1992-08-25 - Laserfiche WebLink

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I I I Council Meeting Minutes August 25, 1992 Page 6 Council Business. continued Larson asked if the office building on the site could be retained and used as a craft workshop for senior citizens. Locke stated that New Brighton Lumber would retain ownership of the building and he feels that if they would sell it to a moving firm. The City's agreement requires the site be completely cleared of structures. Locke confirmed that the financing issues appear to be on track, and the owner, Chuck Stark. is eager to move ahead. Gunderman asked what recourse would the City have if New Brighton Lumber backs out. Locke said the final payment is conditional upon the clearing and vacating of the property. Locke said the worst possible scenario is that the City would be left with a uncleared site, however, clearing the site would cost about $30,000 and that is the amount of the City's last payment which could be withheld if the site was not cleared. Motion by Williams, seconded by Larson, to WAIVE THE READING AND ADOPT THE RESOLUTION APPROVING AND AUTHORIZING THE PURCHASE OF LAND AT 619-.10TH ST. NW. 5 Ayes - 0 Nayes, Motion Carried. Locke presented the New Brighton Lumber development agreement. New Brighton Lumber proposes to build at 201--1 st St. SWan 8,000 sq. ft. office/showroom, 7,000 sq. ft. shop and 4 garages. Improvements would be made to the existing building, parking areas, outside storage, fencing and landscaping. They anticipate future construction of a 36,000 sq. ft. shed. The estimated market value of the proposed initial improvement is $430,000. The projected tax capacity is $18,180. an increase of $11,000 over the existing site's tax capacity. Use of the site will increase its taxable value, improve an unattractive site and make it possible for New Brighton lumber to expand their operations within the City. The City would provide an $100,000 payment which will be dispensed upon certification of the new facilities. An additional $100,000 will be provided in the form of a 15 year revenue note. Payments will be made semi-annually from 50% of the tax increment generated by New Brighton lumber's site improvements. Motion by Williams, seconded by Benke, to WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF NEW BRIGHTON AND CHARLES E. STARK (NEW BRIGHTON LUMBER COMPANY). 5 Ayes - 0 Nayes, Motion Carried Council Business New Brighton Lumber Purchase Agreement Report 92-192 Resolution 92-086 New Brighton Lumber Development Agreement Report 92.192 Resolution 92-087