10/11/2005 - City Council Finance CommitteeAGENDA
CITY COUNCIL
FINANCE COMMITTEE MEETING
TUESDAY
OCTOBER 119 2005
4:30 P.M.
EAGAN CITY HALL
CONFERENCE ROOM 2A
I. AGENDA ADOPTION
H. UPDATE ON NEGOTIATIONS OF CEDAR GROVE
REDEVELOPMENT DISTRICT DEVELOPMENT
AGREEMENT
III. DISCUSSION OF POSSIBLE ACQUISITION OF
MULUCAHY PROPERTY IN CEDAR GROVE
REDEVELOPMENT DISTRICT
IV. OTHER BUSINESS
V. ADJOURNMENT
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City of Eagan demo
TO: TOM HEDGES, CITY ADMINISTRATOR
FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR
DATE: OCTOBER 612005
SUBJECT: COUNCIL FINANCE COMMITTEE MEETING
OCTOBER 11, 2005
UPDATE ON NEGOTIATIONS OF
CEDAR GROVE REDEVELOPMENT DISTRICT DEVELOPMENT
AGREEMENT
In follow up to the Finance Committee direction at its meeting of September 20, staff and
the consultants have continued negotiations with Schafer .Richardson and is narrowing the
number of open issues left to complete an agreement in principle in time for the October 18
deadline. Negotiations have been held on September 20 and 29t and October 4.
At Tuesday's Committee meeting, staff will be present to provide an update on the
negotiations, additional background and respond to committee questions and to discuss
options for moving forward.
DIRECTION REQUEST OF THE COMMITTEE:
To receive an update and provide feedback relative to next steps regarding the Cedar Grove
Redevelopment District Development Agreement, including establishing a revised deadline.
DISCUSSION OF POSSIBLE ACQUISITION OF MULCAHY PROPERTY IN
CEDAR GROVE REDEVELOPMENT DISTRICT
Among the property owners to approach the City requesting consideration of acquisition
is the Mulcahy Company, owners of the properly outlined on the attached site map. Even
though it shows up as two parcels, it is actually a single property, because it was never
subdivided when the right of way for Hwy 13 was acquired.
The owner would like the City to buy the property for redevelopment purposes.
Originally, the owner proposed a price of $4/foot for the northern parcel and $9/foot for
the southern parcel or a combined total of $1.14 million. Staff and the City Attorney
responded that the northern parcel can be developed without assistance upon subdivision
and the south portion will likely need to be assembled with other properties to implement
the Core Area Redevelopment flan. As such, the City's primary interest would be in the
southern parcel. Mulcahy indicated that, if the City would consider buying the entire
property, they would sell the entire parcel for $5/foot or approximately $1.07 million.