HomeMy WebLinkAbout6. Recognition of Interested Citizens Handout
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CITY OF SHAKOPEE
Memorandum b.
TO: Mayor and Council ~i
Mark McNeill, City Administrator ~~
FROM: Gregg Voxland, Finance Director
SUBJ: Bids for land sale north of the Library ~.~
DATE: March 15, 2007
Introduction & Background
Council has received bids for a triangle shaped parcel of land north of
the library (parcel 27-149003-0). Council action at the 2/20/07
council meeting was to deferred action until the 3/6/07 meeting,
prepare a purchase agreement and have it executed for action at the
3/6/07 council meeting which was deferred/tabled until 3/20/07.
The high bidder has not responded with an executed the purchase
agreement for $60[000 with a $5[000 deposit as of this writing.
Alternatives
A. Reject all bids.
B. 1. Rebid the sale.
2. Offer a lease to the adjacent property owner.
3. Designate the site for public parking although it appears to be
really only serving the adjacent property.
4. Landscape the area to enhance downtown and the library site.
5. Block off the site so it can not be used for private
purposes/gain.
6. Status quo - the parcel is being used by the adjacent property
owner and therefore should be taxed unless Council designates it
as public parking.
Recommendation
Alternative \\N' and give staff direction on \\B" alternatives.
Action
Move to reject all bids for the sale of the triangle parcel north of
the library.
Discuss and give staff direction on \\B" alternatives.
Gregg Voxland
Finance Director
H :\Finonce\docs\
00 Page 1 of3
.
Robb Breding
-"""" ----- .' "'--""""" ---
From: Gregg Voxland [GVoxland@cLshakopee.mn.us]
Sent: Monday, April 09, 2007 1:33 PM
To: Robb Breding
Cc: Mark McNeill
Subject: RE: City Council meeting
At the March 20th meeting, Council rejected all bids and that process is terminated.
As per below. I asked you if you wanted to submit an offer assuming that Council would reject the bids and you declined. At the
same time, Dr. McGraw submitted an offer which Council countered and both parties agreed to and a purchase agreement was
completed.
We have also found that there were gasoline pumps and tanks on the southwest part of your property in the past. There;s
concern about pollution on this site coming from your parcel. It is anticipated that soil borings will be done in the near future and
therefore, parking would be prohibited so the borings can be accomplished.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
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From: Robb Breding [mailto:r.breding@ultrawave2.com]
Sent: Monday, March 19, 2007 1:25 PM
To: Gregg Voxland
Cc: 'Don Breding'
Subject: RE: City Council meeting
Gregg, We are only be interested in talking if McGraw (the high bidder) withdraws from the process thus the city would be talking
to us as the next bidder in line for the property.
Thanks.
Robb Breding
River City Realty
612-202-2485
T.h~ultrawave2.com
The information contained in this message and any aUachment may be
proprietary, confidential, and privileged or subject to the work
product doctrine and thus protected from disclosure. If the reader
of this message is not the intended recipient, or an employee or
agent responsible for delivering this message to the intended
recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited.
If you have received this communication in error, please notify me
immediately by replying to this message and deleting it and all
copies and backups thereof. Th.ank you.
...,..........""......................._......"...-~...........~,....~-"'.~.."....".,....,...............".."...~,.......,."',......,....",'""'...,,,"",,'.,,,~."""'''".,.....,-."'''"....."",.."'''.,.,~'''',.,~:..,~''',.,.''''''''''''''.,.~''''',.,'''!'''''~<''l~'''''''',,:1,,i-.,,.,,".,","'_.,,,,',,,,.,,,.,.,..,....,......,,"""=~.'."fl,,..",..."',""'_.,,.,.,......'!,...",,..,,,,,~~,,,....,,,.,...,,.,._,.......,"'.,.......,.,..,"',,....,.,.,.,,,....v."v...,,,.,.',..",.,..,'..,.....n..__..._..........."...~.......
From: Gregg Voxland [mailto:GVoxland@ci.shakopee.mn.us]
Sent: Monday, March 19, 2007 12:03 PM
4/16/2007
" Page 2 of3
. To: Robb Breding
Subject: RE: City Council meeting
Assuming that Council rejects all bids, what would you offer for the lot and what terms for the purchase agreement?
Also, the other bidder is still interested.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
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From: Robb Breding [mailto:r.breding@ultrawave2.com]
Sent: Thursday, March 15,20072:16 PM
To: Gregg Voxland
Cc: 'Don Breding'
Subject: RE: City Council meeting
Gregg, thanks for sending the agenda. May I suggest that one of the alternatives for the council to consider be this:
Alternative C: In light of the high bidder dropping out, the council could recommend that staff work with the other bidder to
negotiate a more reasonable price for the land,
and execute a purchase agreement for that amount.
The bottom line is that after we have had ample time to consider the whole situation. we believe that it would be in the best
interest of the city and us to try to work out a purchase agreement on this parcel. The city gets it back on the tax dole and we
secure a usable parking lot without the fear of this kind of conflict in the future. I believe that approaching us as the next bidder in
line for a more reasonable offer would not violate the biding process. Please let me know your thoughts.
Robb Breding
River City Realty
612-202-2485
r.breding@ultrawave2.com
The information contained in this message and any attachment may be
proprietary, confidential, and privileged or subject to the work
product doctrine and thus protected from disdosure. If the reader
of this message is not the intended recipient, or an employee or
agent responsible for delivering this message to the intended
recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited.
If you have received this communication in error, please notify me
immediately by replying to this message and deleting it and all
copies and backups thereof. Thank you.
~. m.._'_'~"'" ...... ....." .~.,.~
From: Gregg Voxland [mailto:GVoxland@ci.shakopee.mn.us]
Sent: Thursday, March 15, 2007 10:50 AM
To: DR Daniel McGraw; Robb Breding
Cc: Mark McNeill
Subject: City Council meeting
The attached is on the agenda for the 3/20 City Council meeting.
Gregg Voxland
4/16/2007
(g
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
AD1. REGULAR SESSION SHAKOPEE, MINNESOTA MARCH 20, 2007
Mayor lohn Schmitt called the meeting to order at 7:00 p.m. with Council members Steve Clay,
Terry loos, Steve Menden, and Matt Lehman present. Also present were Mark McNeill, City
Administrator; Jim Thomson, City Attorney; Judith S. Cox, City Clerk; Michael Leek,
Community Development Director; and Bruce Loney, Public Works Director/City Engineer.
The Pledge of Allegiance was recited.
Mayor Schmitt asked ifthere were any additions or deletions to the agenda. Mark McNeill
asked that 5.F.6, Application for Tobacco License - Super Marcado Celeste Inc., be deleted from
the agenda.
loos/Clay moved to approve the agenda as amended. Motion carried 5-0.
Mayor Schmitt stated there was nothing to report for the Mayor's Report.
Mayor Schmitt asked if there were any additions or deletions to the Consent Agenda as
published. Cnc!. Menden asked that 5.E.3, Resignation of Mark Themig, Parks, Recreations and
Facilities Director, be removed from the Consent Agenda.
Lehman/loos moved to approve the Consent Agenda as modified. Mr. McNeill read the consent
business. Motion carried 5-0.
Lehman/loos authorized staff to enter into an agreement with Metro Sales for a 36 month lease
and service contract on a Ricoh MPC 4500. (Motion carried under the Consent Agenda)
Lehman/Joos offered
1. Resolution No. 6593, A Resolution Accepting Bids on the 2007 Cemetery Access
Improvements, Project No. 2007-7, and moved its adoption.
2. Approved a5% contingency amount on this project for use by the City Engineer in
authorizing change orders or quantity adjustments on this project.
3. Authorized the appropriate City officials to execute an extension agreement with
WSB & Associates, Inc. to perform construction staking services on the 2007
Cemetery Access Improvements.
(Motion carried under the Consent Agenda)
Lehman/Joos authorized staff to contract with Hydro- Vac, Inc. for the television inspection of
60,000 linear feet of sanitary sewer main at a cost of$0.375 per linear foot with funding to be
expended from the Sanitary Sewer Fund. (Motion carried under the Consent Agenda)
Lehman/Joos authorized the appropriate City officials to execute the Memorandum of
Understanding for Acknowledgement of Public Authority Responsibility between the Shakopee
Mdewakanton Sioux Community, City of Shako pee, City of Prior Lake, Scott County and the
Bureau ofIndian Affairs. (Motion carried underthe Consent Agenda)
.
Official Proceedings of the March 20, 2007
Shakopee City Council Page -2-
Lehman/Joos approve the Stipulation of Settlement as to Parcel No.1, 2 and 3 and authorize the
final payment of $24,900.50 to Gene Hauer Farms Limited Partnership for the 17th A venue
Project, Project No. 2006-1. (Motion carried under the Consent Agenda).
Lehman/Joos moved to authorize staff to purchase one (1) new Toro 580D mower from MTI
Distributing using State Contract Pricing # M-448 for the purchase price of$73,776.81 including
tax and trade. The cost to be expended from the Capital Equipment Fund. (Motion carried under
the Consent Agenda)
Lehman/Joos moved to authorize staff to purchase one (1) new Case DV201 Roller and one (1)
new Quipnet model QT-12T Trailer from S1. Joseph Equipment, Inc. for the purchase price of
$34,584.48. With the cost to be expended from the Capital Equipment Fund. (Motion carried
under the Consent Agenda)
Lehman/Joos moved to authorize the appropriate officials to sign the "Recycling Program
Agreement" by and between Scott County and the City of Shakopee for Spring Clean Up Day.
(Motion carried under the Consent Agenda)
Lehman/Joos moved to authorize the promotion of Scott Blom to the position of Maintenance
Operator, at wage step 1 ofthe current labor contract ($17.735 per hour) and subject to a one-
year probation period. (Motion carried under the Consent Agenda)
Lehman/Joos moved to authorize appropriate staff to; begin the hiring process for the position of
Mechanic's Apprentice in the Public Works Department, to include advertising the position and
interviewing qualified candidates. (Motion carried under the Consent Agenda)
Lehman/Joos moved to approve the bills in the amount of$704,067.96. (Motion carried under
the Consent Agenda)
Lehman/Joos moved to approve the City Council minutes of for February 20, 2007 and March
06,2007. (Motion carried under the Consent Agenda)
Lehman/Joos offered Resolution No. 6592, A Resolution of the City of Shakopee, Minnesota,
Approving a Premises Permit for the VFW Post 4046, and moved its adoption. (Motion carried
under the Consent Agenda)
Lehman/Joos offered Resolution No. 6591, A Resolution Apportioning Assessments Among
New Parcels Created As A Result Of The Platting of Riverside Bluffs 151 Addition, and moved
its adoption. (Motion carried under the Consent Agenda)
Lehman/J oos moved to authorize the expenditure of additional funds in order to replace the panic
bars on the east and west entrance to the City Hall building and properly connect them to the key
card access system, at a cost not to exceed $6,850, to be taken from the General Fund fund
balance. (Motion carried under the Consent Agenda)
Lehman/Joos moved to accept the resignation of Robert J. Smishek from the Building Code of
Adjustment and Appeals and the Housing Advisory and Appeals Board, with regrets. (Motion
carried under the Consent Agenda)
Official Proceedings ofthe March 20, 2007
Shakopee City Council Page -3-
Lehman/Joos moved to authorize city staffto provide financial services to the Tri-city Tactical
Team utilizing the City checking account. (Motion carried under the Consent Agenda)
Mayor Schmitt asked if there was anyone in the audience that wished to address an issue that is
not on the agenda. No one responded.
Mark McNeill presented Council with the resignation of Parks, Recreation, and Facilities
Director Mark Themig. Mr. McNeill said a workshop date will need to be set up to discuss Mr.
Themig's replacement.
Cncl. Menden stated that he wanted to recognize Mark Themig's service to the City of
Shakopee. Cncl. Menden also wanted to compliment him on allowing the City the flexibility to
fill his position since Mr. Themig will not be leaving until July 31, 2007.
JooslLehman moved to accept with regret the resignation of Mark Themig as Parks, Recreation,
and Facilities Director effective July 31,2007. Motion carried 5-0.
Joos/Menden moved to recess for the Economic Development Authority Meeting. Motion
carried 5-0.
Mayor Schmitt reconvened the meeting at 7:12 p.m.
Mayor Schmitt asked for the Council Liaison reports. Cncl. Lehman stated he will defer to the
next meeting. Cncl. Joos stated he attended the Shakopee Public Utility Meeting. Cncl. Joos
stated that Utility Commissioner Joan Lynch resigned after serving nine years on the
commission. Cncl. Menden stated he attended the School Board meeting. Cncl. Menden stated
that Superintendent McBroom extended thanks to the City for the Pike Lake Road extension to
the new elementary school. Cncl. Clay stated he will defer to the next meeting.
Mr. McNeill asked to establish a workshop session on April 10, 2007 to discuss a variety of
issues.
Lehman/Clay moved to establish a workshop meeting on Tuesday, April! 0, to begin at 6:30
p.m. Motion carried 5-0.
Gregg Voxland, Finance Director, presented Council with the Bids for land sale north of the
Library. Mr. Voxland stated that the high bidder, Dr. McGraw, has not executed the purchase
agreement for $60,000 with a $5,000 deposit.
Mr. V oxland stated that in anticipation of all bids being rejected, staff discussed an offer with Dr.
McGraw who is still interested in purchasing the property subject to soils investigation and the
site being "buildable". Mr. Voxland stated that Dr. McGraw signed a revised purchase
agreement with his offer to purchase for $17,700.00 (which is the Assessor's market value) and
also wrote a check for $5,000 earnest money.
.
Official Proceedings of the March 20, 2007
Shakopee City Council Page -4-
Mr. V oxland stated that the cost for the City to do a Phase I investigation is $1,800 and the geo-
technical soils test is about $3,000. Mr. Voxland stated that Dr. McGraw included the City doing
these tests as part of his offer. Mr. Voxland said that if Phase II environmental test is
recommended, Dr. McGraw stated that he would pay for the Phase II ifhe wanted to go ahead
with it. Phase II costs are approximately $5,000 to $10,000.
Cnc!. Lehman asked Cncl. Menden what the likelihood is for a Phase II being needed on this site.
Cnc!. Menden, who is an Environmental Engineer and works for an environmental consultant
firm and has done work on Phase I, II and III projects, stated that there is a strong likelihood that
Phase II would be necessary.
Joos/Menden moved to reject all bids for the sale of the triangle parcel north of the library.
(Parcel No. 27-149003-0) Motion carried 5-0.
Joos/Clay moved to approve a purchase agreement with Dr. McGraw for the triangle parcel north
of the library, as presented, with the amendment addressing the issue of the Phase II
environmental test as the buyer's responsibility. Discussion followed.
Cnc!. Clay asked that since the Council already voted to reject all bids can a purchase agreement
be drawn up without reopening the bids again.
Mr. Thomson, the City Attorney, said there is no requirement to bid for the sale of land. The bid
process is for the purchase and the sale of equipment and supplies. There is no legal requirement
for the method of selling land.
Mayor Schmitt asked for a vote on the motion. Motion carried 3-2 with Cncl. Menden and Cncl.
Lehman dissenting.
Mr. McNeill stated that for reasons unknown Luis Canchari was not present to make his
scheduled presentation to the Council concerning issues that he has with the Shakopee Police
Department and the District court system.
Joos/Menden moved to adjourn to Tuesday, April 3, 2007, at 7:00 p.m. Motion carried 5-0.
The Council meeting ended at 7:45 p.m. on March 20,2007.
Judith S. Cox
City Clerk
Kim Weckman
Recording Secretary
1'V) f'\~ tJ~ a I Ie)" @ Page 1 of"l
The electric service for your building crosses the city parcel without authorization to cross it.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
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From: Robb Breding [mailto:r.breding@ultrawave2.com]
Sent: Tuesday[ March 27,20074:15 PM
To: Gregg Voxland
Subject: RE: Electric Service
Greg, What are you saying here?
Robb Breding
River City Realty
612-202-2485
[,_bredinff@u1trawave2.com
The information contained in this message and any attachment may be
proprietary, confidential, and privileged or subject to the work
product doctrine and thus protected from disclosure. If the reader
of this message is not the intended recipient, or an employee or
agent responsible for delivering this message to the intended
recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited.
J[f you have received this communication in error, please notify me
immediately by replying to this message and deleting it and aU
copies and backups thereof. Thank you.
,................,.""'"...~.>..,....__."',..>.._"""_..._....""...~.,._,."''''',.',,.N"'''..>....,'_~..~''''''''="._''''''~..._""..."..''''....''''''*''''''....__'''_.,._...,.___..._.''''_....,,_v'''_...........'''''_"....,''''''''',..".,.,..'''~."''''''.tt.''w..,..''''''..",.''''',.,.....'w...,.".."......."'""".,...........-'_......,"'""'"'..,.,....."..............._.v.w'"..............__~~......~,...,.,....,..............,.....~...""'.....m........,~."..~.........."......,.."'......................,....".
From: Gregg Voxland [mailto:GVoxland@cLshakopee.mn,us]
Sent: Tuesday, March 27, 20073:16 PM
To: Robb Breding I
Cc: Mark McNeill; DR Daniel McGraw
Subject: Electric Service
FYI:
It ha~ ~ome to the city's at~ention that the underground electric service line for your building at 205 Lewis runs under part of the parcel
that IS In the process of being sold to Dr. McGraw. I have not found any record of an easement permitting the line to cross the city
parcel. SPUC staff has marked the location of the power line from your building to the alley.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
4/16/2007
. Page 1 of2
@
Robb Brading
-'-"-- .... - "" ..~.. .-~""..,.."'--_._--"""".."^"'----- ~~~----
From: Gregg Voxland [GVoxland@cLshakopee.mn.us]
Sent: Thursday, March 29,20071:10 PM
To: Robb Breding
Cc: Mark McNeill
Subject: RE: Refuse
The pending sale is for the complete parcel free of easements.
Your proposal below is not a fair exchange of value, the buyer loses and you gain.
If you want easements for electric service and access, you need to offer some value in return. Then I can approach the buyer to
try to negotiate on your behalf. I assume that the buyer is starting design on the building so if you want access, time is running
out.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
.....,,'~~_...-. '""""~~,., ;-_...~-----> - -~~-,..........
From: Robb Breding [mailto:r.breding@ultrawave2.com]
Sent: Thursday, March 29, 2007 12:57 PM
To: Gregg Voxland
Cc: Mark McNeill; 'Don Breding'
Subject: RE: Refuse
Gregg, I am checking into everything. As you know this whole deal has got us reeling. At minimum I would like the city to grant
us an easement for access and the power cables. It seems only logical and fair that this can be done. I believe that a 16ft
easement running across the very back (east end) of my lot to the alley would take care of the power and the access issues. It
would not affect any building plans that your buyer has as the section of the city lot at that point is only 12' - 16' wide
(approximately 224 square ft for the easement). If I have this, I can change the refuse position and solve all 3 issues.
Sincerely,
Robb Breding
River City Realty
612-202-2485
r.breding@ultrawave2.com
The informaltion contained in this message and any attachment may be
proprietary, confidential, and privileged or subject to the work
product doctrine and thus protected from disclosure. If the reader
of this message is not the intended recipient, or an employee or
agent responsible for delivering this message to the intended
recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited.
If you have received this communication in error, please notify me
immediately by replying to this message and deleting it and all
copies and backups thereof. Thank you.
.~",--"""""''''--'''''''' - - '~"_~'~'N.
From: Gregg Voxland [mailto:GVoxland@ci.shakopee.mn.us]
Sent: Wednesday, March 28, 2007 2:19 PM
4/16/2007
. Page 2 of2
. To: Robb Sreding
Cc: Mark McNeill
Subject: Refuse
Anticipated closing with Dr McGraw is the end of April. I suggest that you make alternative arrangements for your refuse
container - dumpster since the haulers truck will not have access to the current location of your stationary dumpster.
Please contact me if you wish to discuss a land- swap and easement for the electric service and vehicle access to your parcel and
I will see what can be worked out with the buyer.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
4/16/2007
CD Page 1 of 1
,
Robb Breding
From: Gregg Voxland [GVoxland@cLshakopee.mn.us]
Sent: Wednesday, April 11 ,20072:00 PM
To: Robb Breding
Subject: Memo to Council
Attachments: mem04-10.DOC
As per our conversation on Monday, the attached has been sent to the City Council, Mr. McNeill and the City Attorney.
Gregg Voxland
Finance Director
City of Shakopee
952-233-9326
4/16/2007
.
.
CITY OF S HAKO PEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Sale of Lot by Library
DATE: April 11, 2007
Status: Purchase agreement with Dr. McGraw has been signed by both
parties and a check from the buyer has been received. The Phase I
study has been completed but the report not received as of this
writing. Ordering the Geotechnical has not been done pending Dr.
McGraw's ~ecision on the Phase II so both could be done at the same
time to save expenses.
Monday [ I received a call from Mr. Breding, the other party interested
in the parcel. As I understand the situation, his concern is that he
did not have a fair opportunity to acquire the parcel due to poor
communication and the process followed for the sale.
Specifically, the agenda item for the 3/20/07 Council meeting on the
parcel (both parties received a copy of the agenda item) was on consent
and one of the options listed would be acted upon. Therefore he did
not attend the meeting.
The day before the meeting I sent Mr. Breding an Email as follows:
'''Assuming that Council rejects all bids, what would you offer for the
lot and what terms for the purchase agreement? Also, the other bidder
is still interested.N
Mr. Breding's response: "We are only be interested in talking if McGraw
(the high bidder) withdraws from the process thus the city would be
talking to us as the next bidder in line for the propertyH. This past
Monday Mr. Breding stated that his response was based on thinking that
the $60,000 bid of Dr. McGraw was still active. Staff understood Mr.
Breding's response to me to be that he was interested only if Dr.
McGraw was no longer interested in buying the parcel.
At the 3/20/07 Council meeting, Council rejected all bids and did not
elect to re-bid the sale (bidding not required) . That afternoon, Dr.
McGraw had submitted a purchase agreement and check. Council accepted
the offer of Dr. McGraw with the change that he would be responsible
for the cost of the Phase II if he elected to do the Phase II.