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City Council Minutes 07-13-2009 SpecialMINUTES SPECIAL MEETING – MONTICELLO CITY COUNCIL Monday, July 13, 2009 - 5:30 p.m. Members Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf and Susie Wojchouski. Members Absent: None 1. Call to Order. Mayor Herbst called the meeting to order at 5:30 p.m. and declared a quorum present. 2. City Property Disposition Workshop. City Administrator Jeff O’Neill explained the purpose of the meeting to review the parcels listed and identify potential uses for the property and which ones should be marketed. Parcel 1 – Jefferson Commons It was noted that this should be listed as 7.2 developable acres and 2.8 as typed. Jeff suggested that this may not be the best time to market this property if Council wishes to maximize the value that they could potentially receive from a sale. Clint Herbst commented that putting the property back on the tax rolls may be a worthwhile gain in the City’s tax base compared to waiting for a better sale price. Brian Stumpf suggested that the City included a sunset date on any offers that it may negotiate when selling the property. Discussion of Jefferson Commons extended to the Krutzick property, which he has agreed to purchase for development with conditions established in the agreement. The City may hav e the opportunity to rescind the agreement and take the property back for resale. Glen Posusta thought the Krutzick property should be left alone at this time since the property value has most likely decreased compared to the value listed in the agreement with Krutzick. Clint Herbst said that it be necessary to take a look at the restrictions that were placed on the property when the offer was renewed. Brian Stumpf asked whether Nelson Realty is actively marketing the Jefferson Commons property. Economic Development Director Megan Barnett explained that they are no longer handling commercial properties and have reduced their operations. Discussion ensued regarding the options for the City to market the property or to find another broker. Jeff O’Neill recommended trying to market Jefferson Commons first. Once we get an idea of what value we can get for the property, the City could revisit the status of the Krutzick property. RECOMMENDATION BY COUNCIL: City Staff should continue to market the Jefferson Commons 7.2 acre parcel by advertising on the City’s website and should look for a broker to market the property. Suzie Wojchouski asked if there have been inquiries on the use of the vacant car lots. Jeff replied that he is not aware of any except for some temporary lease of space for vehicle storage over winter. Parcel 2 – Outlot A, Country Club Manor (16.71 acres) Suzie Wojchouski asked if this area has to be used for park land as indicated in one place. Jeff O’Neill explained that the land was originally designated for some open space a number of years ago when there was possible development of the land. The surrounding residential areas can now benefit from other park land and this piece would no longer have to contain open space or park area. Clint Herbst indicated that the City should hold off now until more is known about a future interchange in this area of the freeway. RECOMMENDATION BY COUNCIL: Do not market land at this time. Parcel 3 – Dundas Road Piece (5.29 acres) Jeff O’Neill explained how the City acquired this property. It is a rather small piece and would require a pond on a portion of it, if developed. Clint Herbst said that he thinks the City should hold this land for potential larger development of adjacent property. A larger development would probably be interested in this piece for ponding. Glen Posusta asked about the trailer owned by LaMont that is setting on the opposite corner. Jeff noted that it is being used for marketing the larger piece of property. Angela Schumann explained that Vantage Point is representing LaMont’s property. She feels that it would be a good idea if the City would sit down with Vantage Point and discuss the City’s parcel and its availability for purchase. She suggested that the City could also discuss other parcels it has available and goals for use of the properties. RECOMMENDATION BY COUNCIL: Hold on to the property for now. Talk to Wayne Elam of Vantage Point to let him know the property would be available for purchase in connection with a larger development of the surrounding land. Parcel 4 – Old Bowling Alley and parking lot, Monticello Industrial Park (4-5 acres) Jeff O’Neill noted that the City has received a number of inquiries about the lease or sale of the Old Bowling Alley site. Wayne Hoglund of Hoglund Truck Sales sent a short letter indicating his interest in purchasing the property but did not indicate how he would use the property. City Staff has concerns about the possible use of the property: would it be redeveloped? Would the building be torn down and the site used for parking and outdoor storage? Brian Stumpf suggested that the City contact Wayne Hoglund and ask him to submit plans showing his proposed use of the site before the City would negotiate a sale or lease of the property. Clint Herbst said that he thinks the best use of the property would be commercial. He is not sure if Hoglund’s plans would coincide with the City’s plans for land use. RECOMMENDATION: Contact Wayne Hoglund and ask him to submit plans for consideration. If it would not be commercial use, the City could consider a possible lease with 6-month notice to vacate should a buyer come forward. Tom Kelly noted that the City should be cautious of upgrading the property to fulfill a lease and jeopardize the chance for redeveloping the site with tax incentives. Parcel 5 – Monte Club site (9.46 acres developable) Jeff O’Neill noted that this property was acquired in trade with River City Extreme. There was a potential private development that fell through and the property stayed with the City. Clint Herbst suggested a possible use of a portion of the land for senior high rise housing, high end apartments, or something similar that would take advantage of the scenic view. This would leave a portion of the land for public and/or open space. With housing or apartments, a developer could utilize underground parking for better access to the property. Several council members mentioned looking into the possibility of access other than from Fenning Avenue. Suzie Wojchouski mentioned some potential of marketing the land as a retreat center or similar use. It might be possible to market to a private college or foundation. RECOMMENDATION: City should market the property and seek out potential private developers. A portion of the land should be reserved for parkland and trails adjacent to the water tower property. Parcel 6 (this was not on the list) – Land along Walnut Street between Towne Square and Wells Fargo Bank (approximately 4000 sq feet) Jeff O’Neill noted that this piece of property belongs to the City. It has been mentioned in the past as potential parking space for the City and Community Center. RECOMMENDATION: Hold for now – do not market. Glen Posusta also brought up the empty lot on Broadway West in the 100 block of downtown. He asked if it was possible to put up a gazebo or do something to make the space look more attractive. It could be an area for people to gather for lunch or a break. Tom Kelly noted that there are restrictions on property that is in a TIF district and under direction of the EDA. He will check on possible interim uses on vacant property. Clint Herbst asked if there were other areas with vacant lots that the City should be looking at. Angela Schumann suggested that the City should inventory and upgrade the Comprehensive Park Plan. This could include Clint’s suggestion to look at vacant lots. Suzie Wojchouski asked about the kinds of inquiries that have been received for the old bowling alley site. Megan discussed some of the calls received and noted that most are probably not the type of use that the City would prefer for that property. 3. Adjourn. THERE BEING NO FURTHER BUSINESS, MAYOR HERBST ADJOURNED THE MEETING AT 6:45 P.M. __________________________________ Approved: