EDA Agenda 04-28-2011 (EDA/CC)SPECIAL CLOSED EDA/CITY COUNCIL MEETING
Thursday, April 28, 2011
7:30 a.m.
Mississippi - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Bill Fair,
Matt Frie, and Council members Tom Perrault and Brian Stumpf
City Council: Mayor Herbst, Glen Posusta, Lloyd Hilgart
Staff. Tom Kelly, Jeff O'Neill
1. Call to Order
2. Consideration of submitting a purchase agreement for 11 Walnut Street at an on -site auction
Reason's to consider purchasing property:
a. Adjacent to existing EDA owned property
b. Key parcel for future redevelopment based on Embracing Downtown Concepts
c. City owns park land adjacent to parcel
1. Expansion to park/park services /recreation on river/ public parking
d. Opportunity to purchase at a low cost — future purchase may be more costly
e. Building has proven to have rental code compliance issues in the past.
1. As of April 2011 the building was brought into compliance
f. Could maintain leases until desired time to redevelop
1. The EDA/City's intentions would have to be clearly explained to current
tenants
2. Need to determine who would serve as the property manager
g. Have the opportunity to purchase property through surplus TIF funds in District 5, 6,
or 22. Utilizing these districts will require a budget amendment.
Estimated Value /reasonable bid price:
a. Dan Frie to review comparables / existing rent structure
c. Structure of Bid
1. No minimum bid, no buyers premium, owned free and clear
Relocation Costs:
Per the recommendation of Kennedy and Grave, staff talked to two relocation specialists, Wilson
Redevelopment Services and SRF.
a. Need to obtain the services of a relocation specialist
1. Relocation services are estimated to cost approximately $20,000 to negotiate
tenant relocation transactions over a four to six month time frame.
b. Would be subject to tenant relocation costs, even if EDA allows leases to
expire
2. Tenant relocation costs can average between $6,000 — $10,000 per unit
(specific Federal formulas will apply)
3. Relocation costs will most likely be able to be paid through TIF funds.
Alternative Actions:
1. Motion to engage the services of Dan Frie, a licensed realtor to be paid through the seller's
closing transaction, to submit a purchase agreement offer in the amount of for
the property located at 11 Walnut Street at an on -site auction scheduled for May 7, 2011.
2. Motion to deny moving forward with submitting a purchase agreement for the property
located at 11 Walnut Street.
3. Adjourn