City Council Meeting Date: September 4, 2018
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Development Director
Title
Public Hearing on Sale of Land to Strobel & Werner Real Estate Holding Company, LLC.
Body
Action Requested:
The Northfield City Council is asked to conduct a public hearing on the sale of 0.35 acres of parkland to Strobel & Werner Real Estate Holding Company, LLC. for the purpose of business expansion. Following the public hearing, Council will be asked to consider approval of a Resolution.
Summary Report:
Staff recommends that the Northfield City Council conduct a public hearing to consider public input regarding the proposed sale of a portion of public land at 700 Highway 3 South, Lot A of REGISTERED LAND SURVEY NO 12. A 46’ wide strip of City parkland between the East Cannon River Trail and the Strobel & Werner property would be conveyed to accommodate the proposed expansion of Aurora Pharmaceuticals at 1200 Highway 3 South.
According to Chapter 15.5 of the Northfield City Code, the council may by resolution sell or dispose of real property only after a public hearing has been held and published notice of the hearing has been given.
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.
Staff provided a summary of this project and the proposed sale of land at the August 21, 2018 City Council Meeting. A question was raised regarding the possible land use restrictions for the land being sold. After thorough staff review and in consultation with City Attorney, staff finds that the City of Northfield owns the property in Fee Simple with no attachments to a trust, the parkland is under a Registered Land Survey, which does not constitute a formal plat, and the land has no deed restrictions according to the title examination of the original City purchase of the land in 1958.
Alternative Options:
The Public Hearing has been properly noticed in the Northfield News on August 22. Staff recommends conducting the Public Hearing as published.
Financial Impacts:
The proposed valuation for the property in question is $1.47 per square foot. Based on the total square feet, this totals $22,716. The net cash proceeds of the sale of the property shall be used to retire any 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.
Tentative Timelines:
If approved, the developer plans to move forward with land acquisition and preliminary site work in the fall of 2018 followed by construction in 2019.