04-13-10 - Laserfiche WebLink

Home Browse Search

approximately$1,500 per year. He also stated that the tower would need to be painted at some • point in the future, and he will provide a quote for the painting. The electric costs for communication towers are typically the responsibility of the tenants. Staff is verifying the utility cost responsibility. Although the utility building has water and sewer service,the costs are minimal since there is no on-site staff. Property Taxes Ramsey County Assessor lists the following values for the full existing property: o 2010 Total Market Value= $903,000 o 2009 Land Market Value= $715,600 o 2009 Building Market Value=$187,770 o 2009 Total Market Value = $903,300 o 2009 Total Tax Payable = $27,580 If the City purchases the communications tower property, that property will no longer generate property taxes. The Finance Director will provide the estimated loss of property taxes at the meeting. The tenants pay all taxes related to their equipment on the tower. The housing portion of the property would continue to generate property taxes,though the additional taxes generated by the development would be captured in the TIF district. Leases ill Although the tower sale proposal is from SCI, US Bank manages the property on behalf of the George J. Reiling Estate. Staff will have the annual revenue generated by the tower at the meeting. Since the City is in negotiations with SCI to purchase the tower,the details of the negotiation are considered confidential and the revenue cannot be released in this memorandum. Until the City signs a purchase agreement with SCI, US Bank has remained steadfast in their unwillingness to share the details of the lease agreements. The property manager expressed concern about sharing proprietary information since the City also leases space to communication providers on the City water towers. The leases would include such items as the annual payment, annual adjustment rates,term lengths, and termination provisions. While the purchase agreement can have provisions that allow the City to rescind the offer upon review of the leases, it is difficult to formulate an informed counteroffer without the details of the leases. It is also difficult to obtain a complete appraisal without the leases. Attachment • Communications Tower Sale Proposal • Preliminary TIF Run from Ehlers and Associates, Inc City of Arden Hills • C:IUsersyoe_rueblAppDatalLocallMicrosofilWindowskTemporaiy Internet Files1Content.OutlookIX8RIDU3K\041310-FPAC Memo-Rethng Tower Purchase.doc Page 3 of 3