HomeMy WebLinkAbout13.F.1. First and Fuller Parking Lot Sale Discussion
13.f.1.
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: 1 st and Fuller Parking Lot Sale Discussion
DATE: July 21,2009
Comment:
Introduction:
The owner of Levee Drive Apartments has requested to appear before the Council to
discuss his desire to purchase, or enter into a long-term lease for the City owned parking
lot at First and Fuller Street.
Background:
On June 16th, I presented a request from John Bergstad to gauge the City Council's
interest in selling or leasing this parking lot to accommodate parking for residents of
Levee Drive Apartments. Mr. Bergstad is exploring the feasibility of going to a "market
rate" building, and additional parking will be needed. More complete information from
the June 16th agenda packet is attached.
What was being requested of the Council at that meeting was direction on whether there
was an interest in selling, and if so, whether a valuation appraisal should be performed, or
whether staff should advertise for proposals. It was the Council's direction that evening
that they were not in favor of selling the parking lot.
During the discussion there was an inquiry as to whether a City-owned vacant lot a block
west of the Levee Drive Apartments would be possible as an alternative. Mr. Bergstad
indicated that, due to the nature of the senior population in Levee Drive Apartments, that
location would not work.
Mr. Bergstad was unavailable to attend the June 16th meeting. He has subsequently asked
for an opportunity to appear personally before the City Council to state his request,
answer any questions, and ultimately to have you reconsider the earlier direction.
Council should note that, according to parliamentary procedures, had a formal vote been
taken, one of the Councilors who had voted in the majority would have to make a motion
to reconsider this action. However, because there was no vote taken, it is less formal, and
the Council can decide whether it wishes to consider this request again.
Relationship to Visioning:
Reconsideration is not tied directly to any ofthe City's Visioning goals. Originally, the
sale of the parking lot was seen to support Goal D- Vibrant, Resilient and Stable.
Action Required:
Council should determine whether it wants to hear this again from the individual who
made the original request.
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Mark McNeill
City Administrator
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: 1 st and Fuller Parking Lot
DATE: June 16, 2009
Comment:
Introduction:
The City Council is asked to give consideration to the possible sale of the City-owned
parking lot at First and Fuller Street.
Background:
Recently City staff was contacted by BergstadProperties, which is the owner of the
Levee Drive Apartment building, about the possibility of purchasing the City-owned
parking lot located at First and Fuller Street. The City has also been working with
Bergstad on the provision of Congregate dining services at the Levee Drive site.
The parking lot consists of fifty-three parking spaces. The lot has been relocated a couple
of times over the years, but originally it was one of five parking lots which was funded by
a City-initiated public improvement in the 1960's. The acquisition and construction of
those lots were finanaced by the sale of bonds, which were paid for by assessments
against benefiting downtown commercial properties.
In recent years, the parking lot has not been widely utilized, with the exception of Derby
Days when parking is at a premium in the overall downtown area. Otherwise, the lot
does serve parking for adjacent Levee Drive apartments, and occasionally other
downtown parking needs.
Bergstad Properties is in need of additional parking, up to forty-seven spaces. For that
reason they have asked about the possibility of purchasing that lot from the City.
Budget Impact:
It has been awhile since the City has made an investment in downtown parking- some
lots were relocated as a result of the downtown mini bypass. The City is currently
maintaining this 1 st and Fuller lot (sweeping, striping, and plowing). Depending on what
could be negotiated as a sale price, the Council could use that to reinvest those monies to
provide parking in other areas of the downtown area, or alternatively utilize it for general
purposes.
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In order to accurately determine the value of this lot, the City could do one of two things:
1. Have a valuation appraisal -performed. The estimated cost of this would in the
$2000 range.
2. Advertise for proposals. This would provide a larger number of people with
the ability to make an offer, but it might result in Levee Drive Apartments not
being able to provide sufficient parking for residents of that building. The City
has had recent experience with another City parcel for which bids were
obtained. This resulted in an adjacent owner not being able to utilize that lot to
compliment his- property, and created some conflict.
Recommendation:
We see an advantage to the City trying to facilitate a sale to the Levee Drive building
owner. Therefore, our recommendation is to direct staff to have an appraisal done to
determine a value of that property, and report back to Council.
Relationship to Visioning:
This supports Goal D- Vibrant, resilient and stable.
Action Required:
The Council should discuss, and give direction as to whether it will consider the sale of
the City owned parking lot at First and Fuller Street, and have a valuation appraisal
performed.
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Mark McNeill
City Administrator
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