HomeMy WebLinkAboutOrdinance No.1560ORDINANCE NO. 1560
BEING AN ORDINANCE AUTHORIZING TO CONVEY CERTAIN REAL ESTATE
LOCATED AT 950 40TH AVENUE
The City of Columbia Heights does ordain:
Section 1: The City is the owner of certain real property in the City of Columbia Heights, legally
described as "Exhibit A" and attached as part of this Ordinance (the ``Subject Property").
Said real estate is located at 950 40th Ave. Northeast, Columbia Heights, Minnesota. The
Subject Property is referenced in an original agreement, dated July 20, 1982, between the
Columbia Heights Housing and Redevelopment Authority and Terry Evenson, which has
been amended and assigned from tune to time, as the "Walkway Property".
On August 25, 2008 the City Council agreed to accept a "Preliminary Development
Agreement" by and between the City of Columbia Heights and Stadium Village
Properties (the ``Agreement"}. This Agreement detailed the rationale for the City to
transact an action. that would deed title of the Walkway Property from the City to
Stadium Village Properties, LLC (the "Developer") in exchange for the aforementioned
entity to reinvest, at the Developer's awned office building located at 3989 Central Ave.
N. E., in the complete reconstruction of the exterior facade. At the time of the passage of
the Agreement, the cost for the reconstruction was estimated at $500,000. The actual cost
of the project, based on information provided by the Developer is $ 456,900. In addition,
the Developer also infused $994,405 into other improvements in the Walkway, City
owned Parking Ramp and the office building. As of the date of this Ordinance, the
subject exterior improvements have been substantially completed.
As part of the Agreement, the City commissioned an appraisal of the property. This
appraisal, dated October 7, 2008 and completed by Nagell Appraisal and Consulting,
establishes three separate values for the Walkway Property. The "value in use", meaning
a value of a specific property to a specific person or firm as opposed to the market in
general is $245,000. The "value in exchange", meaning the value on the open market is
$25,000. The third is a "lease fee value" of $13 based on the dollar a year provision in the
1982 Agreement.
Section 2: The City Council, by the passage of this Ordinance, hereby agrees that the preliminary
consideration of the Developer, i.e., the reconstruction of the facade at 3989 Central Ave.
N.E., has been substantially completed, and that in turn, the Subject Property should be
deeded to the Developer for $1.00.
Section 3: As part of this transaction the Developer agrees to pay to the City $1,500 for park
dedication fees as part of the minor subdivision approval process. In addition, casualty
insurance on the adjoining parking ramp, as described in the 1982 Agreement, will
become the responsibility of the Developer and proof of the same should be submitted to
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Section 4: The Mayor and City Manager are herewith authorized and directed to execute all
documents necessary to effect the terms of this conveyance.
Section 5: This Ordinance shall be in full force and effect from and after thirty (30) days its passage.
First Reading:
Second Reading:
Date of Passage:
November 24, 2008
December 8, 2008
December 8, 2008
Offered By: Kelzenberg
Second By: Williams
Roll Call: Aye: Peterson, Williams, Diehm, Kelzenberg
Nay: N
Gary L.
Attest:
t
Patricia Muscovitz-CMC ~
City Clerk