6.2. SR 09-27-1999
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ITEM 16.2.
MEMORANDUM
River
TO: Mayor & City Council
FROM:
Pat KIaers, City AdminiSJifmK
September 27, 1999 r~
DATE:
SUBJECT: Allina Medical Clinic Offer to
Purchase City Property
Per City Council direction at the 9/13/99 meeting, I have contacted a number of
council members regarding a price or price range that they would find acceptable
for the city owned property along Highway 10. After receiving this input, I had a
telephone conversation with Mr. Tom McKee who is representing Allina in this
transaction, and I was advised that Allina was prepared to increase its offer to the
city for its property.
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Attached for your consideration is the Allina medical clinic offer for the city
property. The amount of $7.50 per square foot is being offered. The offer, as
outlined in the 9/21/99 letter from Mr. McKee, contains some contingencies
including "city approval of the development plan, design, and zoning to allow the
construction of a medical clinic".
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13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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. CONSTRUCTION. MANAGEMENT. DEVELOPMENT. CONSULTING
IICommitted to Excellence Since 1957"
September 21, 1999
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Re: Purchase of City Property-Hwy. 10 & Joplin St.-Allina Medical Clinic
Dear Pat, Honorable Mayor and City Council,
In accordance with the instructions of the City Council we have conferred with staff and
are prepared to increase our offer to $7.50 per square foot for the above referenced 1 ~
acre site.
. This offer is contingent upon the following:
1. City approval of the development plan, design and zoning to allow the
construction of a medical clinic.
2. A satisfactory review of the property including the results of any soil testing,
hazardous waste and environment review ofthe property.
3. The successful completion of all negotiations for the purchases of the two 1 ~
acre contiguous parcels of land owned by Thomas and Sarah Hartman.
This purchase is for the expressed purpose ofthe construction of a medical clinic. In the
event the purchaser does not construct a medical clinic on this site; the City of Elk River
at its option may rescind this purchase.
Sincerely,
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Thomas E. McKee
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9421 WEST RIVER ROAD . MINNEAPOLIS, MINNESOTA 55444 . OFFICE 612-424-8444 . FAX 612-424-3311