Administration - Joe Huss, Finance Director/Asst. City Manager
Title
Title
Approve Use of Strategic Priorities Funds To Purchase 10550 Nassau Street
end
Executive Summary
Consider approving the use of Strategic Priorities funds for the purchase of 10550 Nassau Street.
Background
On September 19, the Blaine EDA adopted a resolution approving the purchase of property located at 10550 Nassau Street for $2,600,000. The property is key to the redevelopment of the 105th Avenue corridor. Redevelopment of the 105th Avenue area has been identified as a strategic initiative in the Blaine Strategic Plan as well as a priority in the 2040 Comprehensive Plan.
An EDA/city visioning master plan for the area identifies redevelopment of the area for restaurant, retail, entertainment, public gathering spaces and multi-family housing. A master developer is expected to be selected in October and it is anticipated that public improvements/spaces and development of the overall area could begin as soon as 2023. Redevelopment of the overall area will be greatly facilitated with the acquisition of 10550 Nassau.
With the recent adoption of the Use of Strategic Priorities Fund Policy, staff considers this as the best option to fund the purchase of 10550 Nassau. At the September 19 EDA meeting, consensus among the commissioners was supportive of the use of strategic priorities funds. As discussed at the EDA meeting, the purchase meets the policy requirements as the purchase is of high priority for accomplishing established strategic initiatives; has sufficient community-wide benefit consistent with established strategic initiatives, city goals, or programs; and the project will advance or achieve one or more of the strategic initiatives identified in the City’s adopted Strategic Plan. Additionally, the EDA considered the likelihood that the property will be resold once redevelopment of the 105th Avenue corridor is underway and the funds from the resale of the property can then be restored the Strategic Priorities Fund.
Strategic Plan Relationship
Redevelopment of the 105th Avenue area has been identified as an outcome in the City of Blaine Strategic Plan. In addition, redevelopment of the 105th Avenue area is identified as a priority in the 2040 Comprehensive Plan.
Financial Impact
The Strategic Priorities Fund has a current balance of $7.3 million. With approval of this expenditure, staff projects the Strategic Priorities Fund would end 2022 with a balance of roughly $4.9 million.
Redevelopment of the 105th avenue corridor is expected to produce a very significant increase in the City’s tax base.
Staff Recommendation
Adopt the attached resolution.
Attachment List
Use of Strategic Priorities Fund Policy
Body
WHEREAS, the Blaine City Council, in May 2019, did establish the city’s Strategic Priorities Fund; and
WHEREAS, on September 7, 2022, the Blaine City Council approved the city’s Use of Strategic Priorities Fund Policy; and
WHEREAS, the adopted policy provides for the use of Strategic Priorities funds for projects or expenditures that have sufficient community-wide benefit consistent with established strategic initiatives, city goals, or programs; and the project or expenditure will advance or achieve one or more of the strategic initiatives identified in the City’s adopted Strategic Plan; and
WHEREAS, after careful deliberation, the Blaine City Council has determined that the use of Strategic Priorities for the purchase of 10550 Nassau meets the requirements of the Use of Strategic Priorities Fund Policy in that:
1. The redevelopment of the 105th Avenue area has been identified as an outcome in the City of Blaine Strategic Plan; and
2. Redevelopment of the 105th Avenue area is identified as a priority in the 2040 Comprehensive Plan; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine authorizes the expenditure of $2,600,000 for the purchase of property located at 10550 Nassau Street, Blaine, MN 55449.
PASSED by the Blaine City Council this 3rd day of October 2022.