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5. EDSR 11-13-2012 r1 REQUEST FOR ACTION River TO ITEM NUMBER Economic Development Authority 5. AGENDA SECTION MEETING DATE PREPARED BY November 13, 2012 Annie Deckert,Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider Disposition of EDA Property- Outlot A in Northstar Cal Portner, City Administrator Business Park REVIEWED BY ACTION REQUESTED Consider Disposition of EDA Property- Outlot A of Northstar Business Park BACKGROUND/DISCUSSION On October 24, 2012, staff received a request from Bryan Provo, owner and General Manager of Alliance Machine and Provo Enterprises, to purchase Oudot A in Northstar Business Park. Mr. Provo has made an offer to purchase Outlot A in Northstar Business Park for$56,900 and has indicated he would like to utilize the property for bow hunting. The 43.75 acre parcel lies adjacent to Northstar Business Park and is currently undevelopable. Representatives of the engineering,planning and environmental divisions indicated they have no issues with the EDA selling the property, they shared however that the property cannot be platted and must remain as is. The police department indicated that bow hunting would be permitted on this parcel; however the property owner would need to apply for the applicable license on an annual basis. A representative from the ERPD will be present at the EDA meeting to answer questions regarding the process. According to the Sherburne County Assessor, the property is assessed at$56,900 and would generate approximately$937 a year in taxes, calculated at a seasonal recreational use. Additionally, the assessor indicated that any time a tax exempt parcel sells, the county completes a new appraisal, and therefore the value could change. The parcel was appraised in 2010 and is scheduled to be reappraised in 2016. Staff is seeking direction on how to proceed with this request. Per state statute, the EDA has three options: • The EDA may elect to work with Mr. Provo, to sell the lot at a negotiated price • The EDA may choose to advertise the sale of the lot through a public bidding process • The EDA may elect to not sell the lot If the EDA chooses to sell the property, staff recommends getting a formal independent appraisal to properly value the parcel. The county assessor's applied value is for tax equalization purposes and is a he cE ou one-time snapshot of the parcel's value,in this case reflecting 2010. For transparency purposes,it is recommended to ensure the best value for taxpayers. If the EDA chooses to work with Mr. Provo, to sell the lot at a negotiated price, staff will begin working with the city attorney to draft a purchase agreement and call a public hearing for December 10, 2012, to consider public comments regarding the disposition of EDA property. If the EDA chooses to move forward with the sale of the lot through a public bidding process, staff will advertise for bids,and the highest bidder may be granted the option to purchase the property upon staff recommendation. The city attorney indicated that total legal fees for the process (purchase agreement, drafting of covenants, etc.) to be approximately$3,000-$5,000, excluding the cost of the appraisal or staff time). Staff anticipates the EDA to call a public hearing at the December 10,2012,meeting,to be held at the January 7, 2013,meeting. Additionally, state statute requires the Planning Commission and City Council to pass a resolution binding the sale of the lot is consistent with the Comprehensive Plan. If the EDA chooses to not sell the property, there is no action required. FINANCIAL IMPACT Costs involved with this request will vary depending on the course of action taken. ATTACHMENTS • Request dated 10-24-12 from Provo Enterprises • Site location map Action Motion by Second by Vote Follow Up 2A- O . T L.0 Bryan Provo 17520 Tyler Street Elk River,MN 55330 October 22,2012 Annie Deckert Director of Economic Development City of Elk River 13065 Orono Parkway Elk River, MN 55330 Greetings Annie, We have recently become interested on the property to the west of Alliance Machine Inc in Elk River,MN. It is my understanding that the property is owned by the Elk River Economic Development Authority. The property parcel id is 75-757-0010 and is 43.75 acres. With the research I have done,the land is not buildable and may be of no benefit other than we would like to use it for bow hunting.The Tax assessment is valued at $56,900.00 on the Beacon Website. On behalf of Alliance Machine and Provo Enterprises, we would like to make an offer of$56,900.00 to purchase this property.We look forward to your response. Best Regards, Bryan Provo GM Provo Enterprises Sherburne County, MN , IbeaconT' • Date Created: 11/6/2012 — swo erview w r- .Z _ �- N «it e ,i_' OiLLU 1 z x _a Y } I -` w i I of o Jd ,�� 11-1-75 002-1200 Zt,z .2' _ J � � ir707 l75-�Z-140 'aAA r3.�r 9 =.75-003-42 3 11 I �T!? 1 •Legend Townships Q \ Roads P� 3 9ir.(c ,75-002-4201J, Plats r� ,� -o 1 < _, ...�. ` ,w. ]Parcels Q s.'Qq �� \m 75-002-4206 an 1 Y -4— / 1f75TJ.AVE t_ /' I -- G f i I �i� fir,. 75-002-4315 L �2N 1�ZN � . . �- pgVF=t�® t`c. w/ 17;1 S�L�N• ►_ -..'r>` ■cil 171ST1AVF ��rq�tfl 11111' \ 170TH AVE 1 75-011-1401 N i 1,489 f; ,.., „�wi' Parcel ID 75-757-0010 Alternate ID n/a Owner Address n/a Sec/Twp/Rng 2-32-26 Class 776-Municipal-All Other Property Address Acreage 43.75 District ELK RIVER CITY Brief Tax Description n/a (Note: Not to be used on legal documents) Last Data Upload: 11/6/2012 7:22:41 AM Disclaimer:Every attempt has been made to ensure that the information contained on this web site is valid at the time of publication.Sherburne County developed by reserves the right to make additions,changes,or corrections at any time and without notice.Additionally,Sherburne County disclaims any and all liability for damages incurred directly or indirectly as a result of errors,omissions or discrepancies and is not responsible for misuse or misinterpretation.Data is The Schneider Corporation updated periodically.For the most current information contact the appropriate county department. Schneider www.schneidercorp.corn Sherburne County, MN ObeaconTM Date Created: 11/6/2012 Summary Parcel ID 75-757-0010 Parcel n/a Parcel Type RE , Property Address Plat 757-NORTHSTAR BUSINESS PARK Sec-Twp-Rng Sec.2 T32N R26W Legal Description OUTLOT A (Note:Legal descriptions here are for tax purposes only.Do not use them for recording purposes.) Last Recording A 646416 Date:03/29/2007 Class 776-Municipal-All Other Occupancy NON-HOMESTEAD Deeded Acres 43.75 Tax District ELK RIVER CITY School District 728-ELK RIVER Owner 2 This Owner information is password protected. Click here for information on obtaining a user account. Residential 5 This Residential information is password protected. Click here for information on obtaining a user account. Other Buildings a This Other Buildings information is password protected. Click here for information on obtaining a user account. Valuation 2012 Assessment 2011 Assessment 2010 Assessment 2009 Assessment Estimated Land Value $56,900 $56,900 $56,900 $1,000 Estimated Building Value Total Estimated Value --u $56,900 $56,900 $56,900 $1,000'i Tax History u 2012 Payable 2011 Payabler 2010 Payable 2009 Payable Taxable Value $56,900 $56,900r $1,000[ _ $1,000 Net Tax $0.00 $0.001 �..._ ..._® ___® ......., �I _,_� $ I- $0.00 — �___$0.00 Special Assessments $0.00 $0.00 $0.00 $0.00 Principle Balance of Spec.Assessments F Total Payable $0.00 $0.00 $0.00 $0.00 Penalty Due ,,._. ..,. 1— $0.00 $0.00 $0.00 Cost Due&Fees ,, $0.00: $0.00 $0.00 $0.001 Interest Due $0.001 $0.00 $0.00 $0.00 Total Unpaid $0.001 $0.00 - $0.00r $0.00' Penalty/Interest amounts are valid only for a limited time Pay Taxes Online Click here for General Information&Payment Options Deckert, Annie ! crom: Pat Dwyer<pdwyer @thebankofelkriver.com> Sent: Thursday, November 08, 2012 11:19 AM To: 'Bryan @alliancemachine.com' Cc: 'Dan Tveite'; Deckert,Annie Subject: Tuesday's meeting Hi Bryan, I'm going to be at my place on the North Shore next week and won't be able to attend Tuesday night's EDA meeting. The item about the sale of the outlot concerns me. I am in favor of selling the outlot as it adds no real value to the remaining EDA property in the business park. With that said, we need to advertise the sale and seek the highest possible bid. Not doing that would open the EDA and the city up to a serious conflict of interest charge of selling property to an EDA member without competitive bidding. We just can't take the chance of hurting the EDA's reputation and good standing in the community by doing that. I hope you are the successful bidder, but the bidding process needs to be followed. PHD Patrick DWYER trkiMS fOrki 4t1"174 i he Bank , *,. ! VE- P 530 Main Street I Elk River, Minnesota 55330 3ffice: 763-241-8528 I Fax: 763-441-0847 Pdwve r©theba n kofel krive r.com The information in this email is confidential and may be legally privileged. It is intended solely for the recipient(s)addressed. Access to this email by anyone other that the recipient is unauthorized. 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