10.2. SR 10-06-2014 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 10.2
Agenda Section Meeting Date Prepared by
Work Session October 6, 2014 Jeremy Barnhart,Deputy Director, COD
Item Description Reviewed by
Update: Sale and Improvements of Lot 1, Block 1 Cal Portner, City Administrator
Northstar Business Park Reviewed by
Action Requested
Receive information related to the sale and improvements of a portion of Lot 1,Block 1,Northstar
Business Park to Professional Service Bureau (PSB).
Background/Discussion
PSB is a rapidly-expanding business located in the Elk River Industrial Park. Their employee growth has
exceeded the number of parking spaces at their office, requiring on street parking on the adjacent streets,
and impacting area businesses.
Over the past year, staff and PSB have been working on a longer-term solution. PSB is proposing to
purchase 1.31 acres of lot 1,block 1,Northstar Business Park, to construct an approximately 100-space
parking lot. This parcel and parking lot will be attached to the building already owned by PSB. PSB is
not requesting financial assistance for this sale or improvements.
Time is of the essence for this project,as PSB and the city desire a parking lot improved this fall,which
would eliminate on-street parking in advance of winter.
Long term, PSB hopes to construct a larger building on a portion of the remaining Lot 1,Block 1, at
which time the parking lot will be detached from the PSB lot and attached to the new building. There is
no timetable for this construction.
To accomplish this, a number of actions will be necessary,with approving agency in parentheses.
• Quit Claim Northstar Business Park L1,B1 to EDA,to maintain consistency* (City Council)
• Split Lot 1,Block 1 Northstar Business Park (City Council)
• EDA sell parcel A to buyer (EDA)
• Connect parcel A to PSB lot (Staff,via the County)
• Approve parking lot plans (staff)
• Begin construction (PSB)
Due to meeting schedules and seasonal limitations, some of these tasks may be accomplished out of
order. For example,it is anticipated that the EDA will sell the land to PSB before the Council formally
gives them the authority. With Council's general consent, staff anticipates giving PSB authority to begin
P a w E R E U 6 Y
Template Updated 4/14 INIM UREI
construction prior to consummation of the sale; the interests of the city will be preserved by an escrow
agreement.
*It appears that both City and the EDA own a portion of Lot 1,Block 1,Northstar Business Park. The
EDA owns the balance of the unsold lots of Northstar Business Park. Staff could find no record
formally authorizing the EDA to act on behalf of the City Council, therefore,the EDA attorney advises
the Council formally give the property to the EDA,to be sold by them. This will help logistically with
the sale of the balance of Lot 1,Block 1 in the future.
Financial Impact
None
Attachments
■ PSP lot diagram
N:\Public Bodies\Agenda Packets\10-06-2014\Final\x10.2 sr PSB lot purchase.docx
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