8.5. SR 01-09-1995
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ITEM 8.5.
MEMORANDUM
Mayor & City Council
FROM:
Pat Klaers, City Administrator
DATE:
January 9, 1995
SUBJECT: Liquor Store Land Purchase
In early fall 1994, the City Council directed me to open discussions with Mr. Foster
regarding the City's possible purchase of a lot in his Hillside Crossing commercial plat.
There are a number of reasons why the City felt it was appropriate to pursue another
liquor store site. These reasons include traffic congestion and traffic patterns at the
existing site, physical constraints for expansion at the existing site, future development in
the vicinity of Main Street and Highway 169, and the potential cash value of the existing
Northbound property. Good planning dictates that the City understands the growth that
we are experiencing and that we protect our liquor store activities, investments and
profits.
.
At the budget worksession on October 24, 1994, the City Council formally approved a
motion that authorized me to pursue the purchase of Lot 1, Block 1, Hillside Crossing at
market rate for a future liquor store site. This property is located at the northeast comer
of the intersection of Highway 169 and 193rd Avenue (see attachments).
In discussing the price for this land with Mr. Foster, we had an opportunity to review a
5/17/94 appraisal of this property, the Certificate of Real Estate Value for the
SuperAmerica site directly south of this property, Sherburne County information on the
selling price of other highway commercial properties, and the asking (and sometimes
receiving) price for lots in the Elk Park Center project. Overall, it would have been my
desire to have negotiated a lower price for this property, but certainly the price that is
acceptable to Mr. Foster and to myself is appropriate when considering current market
conditions. This property is very desirable and I understand that since we have opened
negotiations, Mr. Foster has received higher offers than what we have agreed upon.
.
Originally Mr. Foster had requested some conditions be attached to this property. The
only condition that caused a concern for me was the "construction manager" condition.
This condition is not part of the final agreement. The other conditions that Mr. Foster
requested were reasonable and are planned to be part of the terms and conditions of the
purchase. In this regard, Mr. Foster has asked that we use the title company that has
handled all of his previous real estate transactions and the City has no problems with this
request. Also, Mr. Foster requested some "quality control" over what is constructed on
Lot 1, Block 1. The City has no major problems with this request as, if and when we
construct a facility, we are certain that it will be of comparable quality to the existing
13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425
.
structures in this subdivision. Regarding these quality control issues, Mr. Foster desired
approval of the site plan (building location, loading areas, outside storage areas, etc.)
landscaping plan, and building exterior design finishes, color and materials. While Mr.
Foster will have approval of these items, he cannot unreasonably withhold approval or
deny the City's requests. This condition would remain in place for any other owner if we
would sell this property.
The City is planning on purchasing just over one acre ofland from Mr. Foster. The area
is approximately 50,885 square feet, of which there is a sign easement over
approximately 4,000 square feet. This sign easement covers the very northern tip ofthis
property and does not affect any City building plans. Lot 1, Block 1, is of a slightly
irregular shape and a sign location at this vicinity and an easement over this part of the
property is not a significant concern. The City eventually may have some of our signage
on this structure.
.
Most ofthe financial discussions with Mr. Foster have been targeted toward the
SuperAmerica site directly south of this property. When taking into consideration the
expenses SuperAmerica had for public improvements (streets, sewer, water, street signal,
etc.) and for the raw land, it totaled $7.59 per square foot. This is the exact same price
that we have agreed to with Mr. Foster for the purchase of Lot 1, Block 1. Seven dollars
and fifty nine cents a square foot for 50,885 square feet equals $386,217.15. A number of
factors came into play whereby this number could have been increased and some other
factors came into play whereby this number could have been decreased. Overall, I feel
comfortable that this is a fair market price.
Once again, there is no timetable for the City to relocate its liquor store. There is no
desire on my part or the Liquor Store Manager's part to relocate immediately. We only
plan on relocating when and if it becomes necessary due to factors affecting the sales at
the current Northbound site. The purchase ofthis lot with liquor store funds is more or
less an insurance policy to protect our liquor enterprise fund.
Recommendation
Staff recommends the City Council approve the purchase of Lot 1, Block 1, in the amount
of $386,217.15 with the understanding that Mr. Foster will have some quality control
over any future structure on this site, and with the understanding that there is a sign
easement over the very northern tip of this property. If this motion is approved, staffwill
then proceed with finalizing a purchase agreement for signatures by the Mayor and
myself.
.
t.
.
.
~ - ~
Utilities Commission. The Finance Director was instructed to proceed with the
bond issue for the Western Area project.
Liquor Store
The City Administrator indicated that the Council previously directed him to
contact Mr. Rick Foster regarding a commercial lot as a potential liquor store site.
The Council discussed the possible need for a new liquor store site in the future.
City Council Minutes
October 24, 1994
Page 4
-----------------------------------
COUNCILMEMBER FARBER MOVED AUTHORIZE THE CITY ADMINISTRATOR TO PURSUE
THE PURCHASE OF THE SITE LOCATED AT THE CORNER OF HIGHWAY 169 AND 193RD
AVENUE AT MARKET RATE FOR A FUTURE LIQUOR STORE SITE. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The City Administrator indicated that Mr. Foster has requested to serve as the
construction manager of the site.
The City Administrator informed the Council that he has had preliminary discussion
with property owners in the western area of the City regarding the future
purchase of a site for a possible "Westbound" liquor store. He indicated that this
would be in the long-range plans for the City.
The City Administrator updated the Council on the progress of the western area
appraisals by Panger and Benson.
The City Administrator indicated that staff has removed the Boelter property and
the Custom Motors property from the Western Area Phase II project. He indicated
that it made more sense to have them served by utilities in Phase III when they
can redevelop in conjunction with Wapiti Park.
6.1. Reschedule ioint City Council Utilities Commission meetinq date from 11 /l 0 to
llill
. COUNCILMEMBER DIETZ MOVED TO DELETE THE UTILITIES JOINT MEETING FROM THE
SPECIAL CITY COUNCIL MEETING CALL FOR 11/10 AND TO CALL A SPECIAL MEETING
OF THE CITY COUNCIL FOR MONDAY, NOVEMBER 14, 1994, AT 5:30 P.M. FOR THE
PURPOSE OF MEETING WITH THE UTILITIES COMMISSION. COUNCllMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.2.
Consider aooointment of desiqnee to County Board of Canvass
MA YOR DUITSMAN MOVED TO APPOINT COUNCILMEMBER SCHEEL TO THE COUNTY
BOARD OF CANVASS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
6.3. Clerical Uodate
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l'fI\SI11'l\1; E\mm:KS
1326 Energy Pork Drive
St. POlll, MN 55108
612.644-4389
1.800.888.2923
Fox: 612.644.9446
CIVil ENGINEERING:
ENVIRONMENTAL
MUNICIPAL
e PLANNING
SOLID WASTE
STRUCTURAL
SURVEYING
TRAffiC
TRANSPORTATION
ELECTRICAL/MECHANICAL
ENGINEERING
HVAC
PowER DISTRIBUTION
SCADA
SYSTEM CONTROLS
OFFICES IN
~INNEAPOl1S
PRIOR lAKE
ST. PAUL
WASECA
January 3, 1995
File: 230~216-30
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
RE: SCHOOL STREET SIGNALIZATION
Dear Mr. Klaers:
As you may be aware, there have been some initial start-up problems with the two signal
systems on School Street located at Jackson Avenue and Freeport Avenue. We have
investigated both signal systems and have determined the source of the problems. This
correspondence is intended to bring you up to date on the status of those signals and the
corrective actions that have been taken.
The concern raised about the signal system at School Street and Jackson Avenue was the
School Street leg turned from green to red too quickly to allow the flow of a reasonable
number of school buses at the morning and afternoon school traffic flow. This signal
system is set up to allow a maximum of a 90 second green time for the School Street flow.
The loop detectors have been set with a 3.5 second delay in them. In other words, as long
as they continue to detect vehicles within 3.5 seconds, the green light will stay on for a
maximum period of 90 seconds before shifting to the green cycle for Jackson Avenue.
Apparently with school buses backed up, their acceleration rate is slower than 3.5 seconds;
therefore, the loop detectors have detennined that there is no vehicle approaching and have
caused the green cycle for School Street to be cut short. This can be easily remedied by
increasing this detection time. The concern is that we do not want to increase it so long
that during off-peak times, the green cycle for School Street remains longer than necessary
because periodic vehicles trip the loop detectors. We have explained this situation to Phil
Hals and will work with him to experiment on the delay time for the loop detectors to get
the appropriate setting for school bus flow.
The signal system at Freeport Avenue and School Street has had a problem with a long
green time being allowed for southbound Freeport even though no vehicles have been
present there. A reanalysis of the loop detectors has determined that two of the detectors
for southbound Freeport are bad and this has caused the problem. The bad loop detectors
have been essentially telling the control panel that vehicles are present when, in fact, they