City Council Meeting Date: October 6, 2020
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Public Hearing on Sale of Property in Faribault (Northfield Hospital + Clinics)
Body
Action Requested:
The Northfield City Council will hold a public hearing on the sale of property at 1645 Lyndale Ave. N., Suite 103 in Faribault for Northfield Hospital + Clinics.
Summary Report:
Northfield Hospital + Clinics (NH+C) purchased the former clinic property in 2016 for $170,000 when NH+C acquired an ENT practice. Later, NH+C partnered with an orthopedic practice to provide services at this clinic. The practices outgrew the clinic space and the clinic moved to a new Faribault location in 2019. The former clinic was offered for sale. A purchase offer was received from K&J Baker Properties, LLC to purchase the building. The Hospital Board approved the sale on July 30, 2020.
The Northfield City Council called for the public hearing to consider sale of property on September 15, 2020. The public hearing notice was published in the Northfield News on Wednesday, September 23, 2020. The public hearing will be followed by a proposed action item approving the sale.
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.
City Administrator Martig will give a brief presentation (see attachment) on the recommendation. Staff is not intending on a separate staff report for the action item following the public hearing.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
N/A