6.1. ERMUSR 03-08-2005Elk River
Municipal
ities
13069 Orono Parkway ~ phone: 763.441.2020
Elk River, MN 55330 Fax: 763.441.8099
February 28, 2005
To: Clk River Municipal Utilities Commission
Jerry Takle
Jim Tralle
.1ohn Dietz
From: Bryan Adams
Subject: Plant Area
Attached is an aerial site plan of our plant facility by Lake Orono. With the passing away
of Mr. John McGibbon, staff started questioning the future property expansion
opportunities for this facility. This aerial map includes two highlighted areas that reflect
future building potentials. One is an extension of the garage/office that was just
completed. The other area is an extension of the "lower garage/cold storage" building for
warehousing inventory. With the possible addition of these two buildings, there is no
other room for expansion. As our organization grows, we will need more room for
outside storage. We either provide this space on this site or utilize more of our space at
the West Substation adjacent to the City Street Department complex. For efficiency,
having more storage at the plant site is more desirable.
The question at hand is do we want to purchase the three residences to the north of our
plant facility. The residence on the corner is currently for sale. The status of the
McGibbon residence is in question. The pro's and con's of purchasing this property are
as follows:
Pro's
1) Provide for future expansion opportunities at the plant facility.
2) Resolve fence issue with McGibbon property. (ERMU is
encroaching on the McGibbon property with his permission. He
was drafting an agreement but was never completed).
3) Property could be rented until such time it became necessary to use.
Con's
1) The lay of the land (steep bank) makes these properties difficult to
utilize from the south. Retaining walls would be a necessity.
2) High visibility from Main Street would make outdoor storage
undesirable without elaborate screening.
3) Property expensive to purchase. It is a non budgeted item and would
severely deplete reserves without bonding.
Instead of purchasing all three properties, a possible solution would be to purchase the
single family residence just north of the garage/office building when it becomes
available. Also purchase the back half of the McGibbon property. We ask for your input
on this issue. We have the following options.
1. Do nothing
2. Purchase the property as it became available
3. Decide not to decide -possibly purchase property at a latter date when it
becomes available.
The fence issue with the McGibbon property needs to be resolved.
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