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7.1. SR 10-11-1999 rll ---'\) ( )j ~li< ITEM 7.1. MEMORANDUM River TO: Mayor & City Council FROM: Pat Klaers, City Administrator DATE: October 11,1999 SUBJECT: Allina Proposal At the September 27, 1999, meeting the City Council decided to continue this agenda item until its October 11, 1999, meeting. Attached for your review and consideration is the material that was in the September 27, 1999, agenda packet related to the Allina Medical Clinic offer to purchase the city property. The Planning Commission reviewed the rezoning issues associated with this request at its September 28, 1999, meeting. The City Council scheduled to hold a public hearing on the rezoning issues on Monday, October 18, 1999. . s:council \ allipro . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 r\.! -'\( ( II ltil River . . ITEM #6.2. MEMORANDUM TO: Mayor & City Council FROM: Pat Klaers, City Adminis~~ 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. 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". 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 .. .... ....TIMC() CRUCTlON. MANAGEMENT. DEVELOPMENT. CONSULTING "Committed 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 ofthe 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 ofthe 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 of the 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, --V::~ Thomas E. McKee . 9421 WEST RIVER ROAD . MINNEAPOLIS, MINNESOTA 55444 . OFFICE 612-424-8444 . FAX 612-424-3311