CCP 05-17-1999 - Laserfiche WebLink

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I e e . CITY OF ARDEN HILLS . MEMORANDUM DATE: May 17, 1999 TO: Mayor and City Council Kevin Ringwald, Assistant to tbe City Administrato~ Direction for development of Morris Communication property FROM: SUBJECT: Requested Action The City Council is being requested to provide direction to Staff on the development of the Morris Communications property (a.k.a., Naegele Property). Background As you are aware, the City has been working on the redevelopment of the GBD for a number of years. The first four building phases of the project are now complete. The redevelopment of the keystone properties (Morris Communications, Vaughan, A TS Steel, and the MT Properties) now lies ahead (Exhibit A). These properties are at the northeast corner ofInterstate 694 and 35W and offer extremely high visibility to regional traffic. The City's previously stated vision for these properties consists of a multi-story office building(s). To this end, the City has entered into a development agreement with Morris Communications for the acquisition of real estate for road purposes (Gateway Boulevard), construction of a regional storm pond, removal of two billboards (on Interstate 35W), and the marketing of its remnant properties (Exhibit B). Additionally, the City requested that its City Engineer (Greg Brown ofBRW, Inc.) prepare Plans and Specifications for the improvement of Round Lake Road, south of the Indykiewicz property. Kevstone Properties Property Acreage * Land Value * Building Value * Total Value * Morris 18.572 acres $1,466,400 - $1.81/sf $0 $1,466,400 Vam,han 18.343 acres $142,200 - $0.18/sf $7,800 $150,000 ATS Steel 4.268 acres $184,900 - $1.00/sf $1,015,100 $1.200,000 MT ProDerties 2.168 acres $79,800 - $0.85/sf $0 $79,800 TOTAL 43.35] acres $1,873,300 - $0.99/sf $1,022,900 $2,896,200 . Information based on Ramsey County (Department of Property Records and Revenue) data, Deeember of 1998 The City Staff has been meeting off and on with representatives of Morris Communications. The purpose of these meetings has been to identify and successfully market this property to an Office user, per City Council direction. Morris Communications has hired real estate agents (Terry Kingston - First Capital), appraisers (Bob Strachota - Shenehon Company), and attorneys (Gary Gandrud - Faegre & Benson) to facilitate the sale to an acceptable user to the City and to Morris Communications. To this point in time this efforts have not been successful in attracting an office user to the site.