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VIII-7 <br /> February 13, 1996 <br /> • MEMO <br /> To: Mayor and City Council <br /> From: Matthew Fulton <br /> Subject: 530 5th Avenue NW Building <br /> Date: February 13, 1996 <br /> The"530" building is an office warehouse/industrial building with 63,644 square feet. The <br /> building has been for sale or lease since vacated by ZEOS approximately four years ago. The <br /> property has recently gone into foreclosure and is currently held by Western Bank in Mounds <br /> View. Western Bank has been aggressively pursuing a buyer for the site. The asking price for the <br /> property is$787,000 although the City could acquire it for approximately$741,000. Two parcels are <br /> included with the building. <br /> The purchase of this property has been contemplated for the purpose of eventually extending <br /> County Road E2 through to Old Highway 8, as well as to assist with certain surrounding <br /> redevelopment activities. The Economic Development Commission has discussed this issue and <br /> is in support of the extension. Railroad spurs and a small portion of the MacGillis and Gibbs <br /> • would also need to be crossed. These issues would also need to be addressed in order to construct <br /> the road. <br /> The building has four tenants at this time occupying approximately 30% of the building and <br /> producing$8,000 of income per month. The tenant leases are subordinate to the mortgage and <br /> are terminated because of the foreclosure procedure. Issues affecting current tenants have not <br /> been resolved. The building currently generates approximately $32,000 per year in taxes. <br /> Staff will continue to preform due diligence on the property as in all property purchases. <br /> Discussions with the Minnesota Pollution Control Agency and the Soo Line Railroad are <br /> continuing. <br /> 111111 <br />