ECONOMIC DEVELOPMENT AUTHORITY - Erik Thorvig, Economic Development Coordinator
Title
PUBLIC HEARING AND CONSIDERATION OF THE SALE OF EDA PROPERTY AT 10501 UNIVERSITY AVENUE
Background
The EDA owns the property at 10501 University Avenue. The EDA purchased the property on March 31, 2017 for $260,000. The site formally had a dilapidated gas station that had been vacant for several years. After purchase the City demolished the gas station. The site is .64 acres and zoned B-2 Community Commercial.
The City has actively been marketing the property since closing at a negotiable price. The property has garnered some interest because of the “For Sale” sign. Staff also reached out to various developers and end users. Several food/coffee users were contacted including Caribou Coffee, Starbucks, Dunn Brothers and Jimmy Johns. Similar responses were received from them such as the site not being close enough to Cub Foods, too close to other existing locations, or not meeting their general corporate location criteria that every restaurant has. At the time the letter of intent was submitted by The Linn Companies, staff had interest from two other parties. They were informed that they would need to submit a competing offer by a certain date. No competing offers were submitted by the deadline.
The Linn Companies is offering to purchase the property for $150,000 ($5.38/ft.). They are proposing to construct a 4,510 sf. Tumble Fresh Laundry facility. The Linn Companies has three Tumble Fresh locations in White Bear Lake, Cottage Grove and Fridley. Photos of those buildings and other projects done by the developer are included. A letter from the developer is included that describes the facility. In general they describe the facility as “safe, clean bright and enjoyable, with the most efficient and highest quality equipment and technology available. We offer washers as large as 135 pound units which are the largest coin operated units on the market and big enough to wash large area rugs, sleeping bags, and much more. Our investment in equipment and technology alone is over $1,000,000 per location.” More information can also be obtained at www.tumblefreshlaundry.com.
As indicated prior, the EDA purchased the property for $260,000 and demolished the building for $19,500. Typically when a City is involved in a redevelopment project that involves purchasing a dilapidated property, costs are not fully recouped. This is because the original purchase involved a building and land and the sale involves only land. The purpose of the EDA is to improve the community by removing blighted properties and strengthen the tax base and this project meets that purpose.
It is anticipated the developer would submit a site plan and obtain all necessary approvals this winter and start construction next spring. Staff anticipates the need for setback variances to University Ave. so the plan would come before the Planning Commission and City Council. In general the developer constructs high quality buildings as shown in the attached photos. A new fence would be required along the east property line and additional landscaping would be required along the east property line also. The facility would be operational by next summer/fall.
Attachments
Letter of Intent
Letter from Developer
Concept Site Plan
Photos of Existing Tumble Fresh Laundry Locations
Photos of Other Projects Done By Linn Companies
Recommendation
It is recommended that the EDA hold the public hearing and subsequently adopt the attached Resolution approving the sale of 10501 University Ave. to The Linn Companies.
Body
BE IT RESOLVED by the Board of Commissions (the “Board) of the Blaine Economic Development Authority (the “EDA”), as follows:
WHEREAS, it is one of the goals and purposes of the Blaine EDA to improve the community, strengthen the tax base and enhance employment opportunities; and
WHEREAS, the EDA owns property located at 10501 University Ave.; and
WHEREAS, The Linn Companies has indicated an interest in purchasing the property at 10501 University Avenue to develop a Tumble Fresh Coin Laundry; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the President and Executive Director of the Blaine Economic Development Authority are here authorized to execute any and all agreements and documents required for the sale and transfer of ownership of 10501 University Ave. to The Linn Companies in the amount of $150,000.00.
PASSED by the Blaine Economic Development Authority this 7th day of September, 2017.