HomeMy WebLinkAbout13.C.2. Denny Hecker Property Discussion
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
PROM: Mark McNeill, City Administrator
SUBJECT: Denny Hecker Property Discussion
DATE: January 5, 2010
Comment:
Introduction:
At the January 5th meeting, the City Council will be asked to discuss and respond to a
proposal to negotiate acquisition of the former Denny HeckerlShakopee Dodge property,
located at 1615 Weston Court. Scott County will make the presentation.
Background:
Scott County has had discussions with the Metropolitan Council about the possibility of
purchasing the now vacant Shakopee Dodge site as a transit hub. If purchased, it would
allow for indoor storage of the County's bus fleet, serve as administrative offices for
Scott County Transit, and would also provide a park and ride site for approximately 400
vehicles. The current building would offer the advantage an indoor waiting area for
transit riders.
It is also possible that space could be available for small start-up businesses or other
businesses to either lease floor space, or be part of a business incubator project.
MNDOT and the Metropolitan Council have indicated that there may be money available
for a possible purchase. However, it would be expected that the Cities of Shakopee and
Prior Lake would contribute transit funds to the project, as well as the County. Before
spending more time on this, they have asked that the City Council discuss this issue. It is
expected that the County will have a similar discussion with the Prior Lake City Council.
It is unknown as to how long this funding will be available.
Concern has been expressed by some about the impact of taking this prime retail location
off of the tax rolls, and how this site would be good for another auto retailer, or retail in
general. However, given the contraction of the number of retail auto franchises, it
appears to be unlikely that another new car vendor will be interested soon. On the other
hand, at such time as the economy turns around, and that a public transit facility is not the
highest and best use, it could be sold, and another transit location acquired at that time.
Budget Impact:
Informal discussions previously about the use of this property have indicated a concern
about taking this property off the tax rolls. Attached is a copy of the most recent tax
statement for 2009. As shown, the City would expect to receive approximately $20,828,
out ofthe total of$156,019.16 paid for total property taxes (plus assessments of$9063).
That is based on a 2009 evaluation of$5,039,500. Note that the current asking price for
the property is now $3.2 million. Ifpurchased for private use, the taxes paid would be
affected by the selling price.
Of the total taxes paid, $45,553 of that goes to the State General Tax, and $41,974 for a
fiscal disparities contribution.
Therefore, the total received by local jurisdictions (City, County, and School District) is
$64,997, plus the portion of fiscal disparities which reverts to the City, which would be
an additional $10,000.
If this site is purchased, and space is leased to private parties, some property taxes, or
payment in lieu of taxes could be expected.
If the site is acquired, the cities' share ofthe cost of the surface lot park and ride portion
of the site would be based upon a 60/40% split between Shakopee and Prior Lake. That
amount will need to be determined. Funding would come from the Transit reserve, which
currently has a $1.7 million balance.
If this site is not acquired, the long term plan calls for Shakopee and Prior Lake to fund
surface parking at a site generally near to the 1 ih Ave/ Marschall Road location.
Recommendation:
Council is asked to discuss and give direction regarding whether it is interested in
partnering with Scott County, the City of Prior Lake and the Metropolitan Council in the
acquisition of this site for transit use.
Relationship to Visioning:
Depending upon the decision of the Council, either way this could be seen as supporting
Goal E,"Financially Strong", as well as Goal B,"High quality of Life".
Action Required:
The Council should discuss and give direction regarding whether it is interested in
partnering with Scott County, the City of Prior Lake and the Metropolitan Council in the
acquisition of this site for transit use. ~llQ0t IJJIJ\ ~
Mark McNeill
MM:cn City Administrator
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TAXPAYER COpy SAVE FOR FUTURE REFERENCE.
.~'.~. - .~"~" SCOTT COUNTY I I
/Soott 200 4th Avenue West 2009 PROPERTY TAX
5hakopee, MN 55379~ 1220
Pll0ne: (952)496"81.50 STATEMENT
._J!l'-~"",,,,,,,sIll'~ FAX: (952)496-8135
WWW.CO.scDtt.rnn,u:,
Property ID: R 273040030 YOUR PROPERTY TAX VALUES & CLASSIFICATIONS
BIll #: 42993 Taxes Payapie Year: 2008 2009
Estim ated Jvlarkel 4,940,900 5,039,500
TAXPAYER ID: 44010 Value:
CHRYSLER REALTY CORP Nev\'" Imnrovements.!
TAX AFFAIRS PT 485-12-30 Expired'Exclusions;
1000 CHRYSLER DR Taxahle Market Value: 4,940,900 5,039,500
AUBURN HILLS MI 48326-2766 I;-operty Class: COMMERCIAL COMMERCIAL
Desc: SHAK VALLEY MARKETPLACE WEST
Lot-003 Block-DOl
You may be eligible for one or even two
$$$ refunds to reduce your property tax.
REFUNDS? Read the back of this statement to find out
how to apply.
Taxes Payable Year: 2008 2009
1. Use this au,1Ount on Vonn Nl1 PR to see if you're eligible for a property ta'\ refund.
FHe by A\lgUSt 15. If this bui>. is checked, you owe delinquent taxes l:lJH\ are nl)t eligible.
2. Use this amount for the speciai property tax refund 011 schedule J of Fonn M t PR
Your Property Tax and How It Is Reduced By The State
3. Your property ta:-: before reduction by state-paid credits 151317.67 156,019.16
4. Credits paid. by the state of Minnesota t.o reduce your property tah:
.!\.. Homestead and Agricultunll Market Value Credits
B. Other credits
5. YOllr property ta.'{ after reduction by state-paid credits $151,317.67 $156,019.16
Property Tax by Jurisdiction
6. County SCOTT COUNTY 21,002.16 20,863.47
7, City or to...vn CITY OF SHAKO PEE 20,538.31 20,828.06
8. State General Tax 45,061.27 45,553.21
9, School district: 0720
A. Voter .A"pprO\'ed Levies 18,734.99 19,567.64
B. Oth.er Local Levies 3,670.21 3,738.85
10. Spedal T,t..,(lng Districts A. METRO DISTRICT 1,632.13 1,580.46
R OTHERS 1,354.21 1,585.57
C. TAX INCREMENT
D_ FISCAL 39,059.06 41,973.83
! 1. Non-school voter approved refemda levies 265.33 328.07
12. Total property taxes before special assessments $151,317.67 $156,019.16
Special Assessments on Your Property:
13. Special Assessments: INTEREST: 1.006.98 PRINCIPAL: 8,055_86 9,566,33 9,062.84
CO RD 171M: 9,062.84
Ciil
14. YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS $160,884.00 $165,082.00