ECONOMIC DEVELOPMENT AUTHORITY- Erik Thorvig, Economic Development Coordinator
Title
APPROVAL FOR PURCHASE OF 1409 105TH AVENUE NE
Background
The property at 1409 105th Avenue is currently for sale. For the past year the current owner was attempting a redevelopment project which would have included the subject property, along with the vacant lot to the north and the property at 1491 105th Avenue (Mark’s Welding). The project likely would have required EDA assistance for demolition and acquisition. Unfortunately, the owner was not able to put a project together and therefore has listed the property for sale.
At the August 2nd workshop, city council directed staff to pursue purchase and bring back a formal item for approval. The sales brochure is attached for reference. The current asking price is $350,000. Staff has negotiated a purchase price of $340,000. Anoka County tax records value the property at $172,400 and the property was purchased on December 22, 2015 for $228,500.
The 3,500 sf. building was built in 1973. The property has a current tenant that has a short-term lease. The property is zoned I-2 Heavy Industrial. Staff has received phone calls from perspective buyers interested in using the property for auto sales (not permitted) and auto repair (permitted use). The corner of 105th and Highway 65 is identified as a priority redevelopment area in the 2040 Comprehensive Plan (see attached maps). Strategy for the area includes “Opportunities to acquire any of the buildings from willing sellers should be explored if they come up”. Given the improvements to 105th Avenue and other activity in the area, this is a prime gateway to the National Sports Center and adjacent commercial areas. In addition, staff is concerned that the property may be purchased by someone that would use the property in a manner not consistent with the future vision of the corner though permitted by zoning.
If the property is acquired, the EDA could explore the option of a continuing to lease the property to the current tenant or just terminate the lease and clear the property. After meeting with the current tenant, staff recommends entering into a yearlong lease. A proposed lease would be brought forward to the EDA on September 6, 2018. Regardless, the EDA would hold the property until a larger redevelopment is proposed that would include multiple parcels on the corner.
Funds for the purchase would come from existing pooled TIF. Current financial projections indicate about $1.8mil available for non-identified projects such as this.
Attachments
Location Map
Redevelopment Area Map
Property Listing
Recommendation
It is recommended that the EDA adopt the attached Resolution approving the purchase of the property at 1409 105th Ave.
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, redevelopment of 105th Avenue and Highway 65 has been identified as a redevelopment area in the 203 and 2040 comprehensive plan; and
WHEREAS, the properties at 1409 105th Ave. is for sale and within the redevelopment area; 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 purchase of 1409 105th Ave.
PASSED by the Blaine Economic Development Authority this 16th day of August 2018.