City Council Meeting Date: February 6, 2024
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Consider Approval of Sale of Property in Lonsdale by Northfield Hospital + Clinics.
Body
Action Requested:
The Northfield City Council consider the attached Resolution approving the sale by the Northfield Hospital + Clinics of real property at 103 15th Ave. S.E., Lonsdale, MN 55046 and dispensing with review of the sale by the Northfield Planning Commission. Note: Approval requires a two-thirds (5/7) vote.
Summary Report:
The Lonsdale clinic ceased operations on November 17, 2023. Primary Care services transferred to the Lakeville Clinic and Women’s Health services and Addiction Medicine services transferred to the Northfield Clinic.
The building was appraised at $2,060,000. Four parties showed interest but only the City of Lonsdale made an offer. NH+C Administration made a recommendation to the Hospital Board to accept the offer of $1,825,000 based on price, local market conditions, the proposed use of the property, and the holding costs of the property. The Hospital Board approved the sale to the City of Lonsdale on December 28, 2023.
The Northfield City Council called for the public hearing to consider sale of property on January 16, 2024. The public hearing notice was published in the Northfield News on Wednesday, January 24, 2024.
Per Northfield City Charter Section 15.5 a public hearing is required prior to the sale of real property.
City Charter Section 15.5. - Sales of Real Property.
The council may by resolution approved of by at least five (5) members sell or otherwise dispose of any real property of the city. A sale or other disposition of the city's real property may be made only after a public hearing has been held and published notice of the hearing has been given at least ten (10) but not more than thirty (30) days prior to the hearing. The net cash proceeds of the sale of the property shall be used to retire any outstanding indebtedness incurred by the city in the acquisition or improvement of the property. Any remaining net cash proceeds shall be used to finance other improvements in the capital improvement budget or to retire any other bonded indebtedness.
Minnesota Statutes, Section 462.356, subdivision 2 states that no publicly owned interest in real property within a city shall be acquired or disposed of until after the planning commission has reviewed the proposed acquisition or disposal and reported in writing to the city council its findings as to compliance of the proposed acquisition or disposal with the comprehensive plan. The same statute further states, however, that the city council may, by resolution adopted by two-thirds vote, dispense with the requirements of this subdivision when in its judgment it finds that the acquisition or disposal of real property has no relationship to the comprehensive plan.
The public hearing will immediately proceed this item and is a separate item on the agenda. No additional staff report is intended for this action item.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
ü January 16, 2024 City Council calls for public hearing
ü January 24, 2024 Notice of Public Hearing Published
• February 6, 2024 Public Hearing on property sale
• February 6, 2024 City Council votes on property sale
• March 1, 2024 Closing date, if approved