Economic Development Authority - Erik Thorvig, Community Development Director
Title
Title
Approve Purchase of 8839 Central Avenue NE
end
Executive Summary
Consider purchase of property at 8839 Central Avenue NE.
Background
Several years ago, the property at 8839 Central Avenue was listed for sale. At that time, the property was discussed by the EDA and direction was given to staff to negotiate a purchase. The asking price was $350,000. Discussions with the property owner never materialized. Representatives of the family property ownership group reached out to city staff again recently about a potential purchase. They have offered the property for $225,000.
The property consists of a single-family house built in 1927. The property is zoned B-2 Community Commercial. Commercial zoning is in place for all properties along the Highway 65 frontage south to the city limits. The property is .44 acres (19,166 square feet). The EDA owns an additional 1.37 acres south of this property along the east side of Highway 65, however the subject property is not contiguous with the EDA owned property. There is one property in between. These properties were purchased by the EDA in the early 2000s. The properties purchased by the EDA had older, non-conforming single-family homes at the time.
The properties on the east side of Highway 65 between Highway 10 and 87th Avenue have been identified as a redevelopment area in the 2040 Comprehensive Plan. The identified strategy is to “Continue to assemble parcels from willing sellers. Look for opportunities to work with the two larger office users for possible redevelopment. Eventually market the vacant/assembled parcels for destination office uses.”
The Anoka County Assessors value is $181,400 and is based on the current residential use of the property. If the home were to be sold for single family purposes on the private market, it would likely sell around the $225,000 asking price. If the EDA were to purchase the property, the land would be sold for commercial purposes in the future. Anoka County has vacant commercial land in the area valued at $7.57/sf., therefore making the raw land worth $145,100. Given the owner could likely sell the house for $225,000 in the private market, the asking price is not unreasonable.
The EDA discussed potential purchase of this property at a closed session on February 7, 2022, and directed staff to execute a purchase agreement based on the proposed asking price.
If purchased, the house would be demolished, and the land would be held until a development plan is prepared for the area.
Strategic Plan Relationship
The property/area is not identified in the Strategic Plan, however the properties on the east side of Highway 65 between Highway 10 and 87th Avenue have been identified as an opportunity redevelopment area in the 2040 Comprehensive Plan. The identified strategy is to “Continue to assemble parcels from willing sellers. Look for opportunities to work with the two larger office users for possible redevelopment. Eventually market the vacant/assembled parcels for destination office uses.”
Board/Commission Review
Not applicable.
Financial Impact
The proposed purchase price is $225,000 plus any closing costs. The purchase would be funded by the EDA Capital Fund which has a current balance of $3.4 million. This fund is intended to be used for redevelopment purposes citywide.
Public Outreach/Input
Not applicable. Public hearings are only required when the EDA sells property.
Staff Recommendation
By motion, adopt the attached resolution directing the president and executive director to execute any necessary documents to purchase the property at 8839 Central Avenue.
Attachment List
Location Map
Pages from the 2040 Comprehensive Plan
Body
WHEREAS; the property at 8839 Central Avenue NE is for sale; and
WHEREAS, the owners of the property have reached out to the EDA regarding a potential purchase; and
WHEREAS, the property is located within an identified redevelopment area in the 2040 Comprehensive Plan; and
WHEREAS, language within the 2040 Comprehensive Plan states as a strategy to “Continue to assemble parcels from willing sellers. Look for opportunities to work with the two larger office users for possible redevelopment. Eventually market the vacant/assembled parcels for destination office uses.”
NOW THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Authority hereby approves purchase of 8839 Central Avenue NE in the amount of $225,000 and hereby directs the president and executive director to execute any necessary documents to complete the purchase.
PASSED by the Blaine Economic Development Authority this 23rd day of February, 2022.