HomeMy WebLinkAbout03.09.20REDEVELOPMENT AUTHORITY MINUTES
March 9, 2020
PRESENT: Thomas Belter, Jack Bermingham Steve Hintz, Jason Lasky, Lori Palmeri Susan
Panek
EXCUSED: Archie Stam
STAFF: Allen Davis, Executive Director/Community Development Director; Darlene
Brandt, Grants Coordinator; Andrea Flanigan, Recording Secretary
Chairperson Palmeri called the meeting to order at 4:00 pm. Roll call was taken and a quorum
declared present.
The minutes of January 15, 2020 and Closed Session January 15, 2020 were approved as
distributed. (Belter/Panek).
20-06 Determination of Necessity; Establish Fair Market Value; Authorize Purchase of
706 South Main Street ($908,000)
Motion by Belter to move Res. 20-06
Seconded by Lasky.
Ms. Panek asked if the lot would be reconfigured and combined with the rest of the properties
owned by the RDA.
Mr. Davis stated it would be reconfigured once a development would be proposed for the sites.
Ms. Panek questioned if the amount offered of $908,000 is the assessed or appraised value.
Mr. Davis stated the assessed value is around $250,000 and the appraised value is approximately
$450,000. The $908,000 is the appraised value, the relocation costs that Mr. Dumke incurred to
move Lueck's to a new location and any attorney fees and costs associated with the acquisition and
sale of the property. The acquisition and relocation costs would have been much higher for the
City than for a private developer.
Ms. Palmeri asked if there was a joint wall between Luecks and the bowling alley at 710 S. Main St.
Mr. Davis stated there is a joint wall which was an issue for demolition. Acquiring Lueck's now
would also save the City money on demolition that is already taking place at 43 E. 71h Avenue. The
crew is already on site and could finish demolition of the entire block at once if the acquisition is
approved.
Mr. Hintz arrived at 4:05
RDA Minutes March 9, 2020 Page 1
Ms. Panek asked about the fair market value of the property.
Mr. Davis stated the price per square foot is similar to what the RDA has been paying for the
surrounding properties.
Ms. Palemri asked how much has been spent on acquisition for the 700 Block of S. Main St. since
this is the last piece.
Mr. Davis stated with this last piece acquisitions would be approximately $4 million for the 700
and 800 block of South Main St.
Mr. Belter asked at what point do we know this is a good economic development move for the
City.
Mr. Davis stated that conversation would likely take place at a future meeting with the RDA.
When the RDA releases the RFP for redevelopment of this site it will be important for the RDA to
discuss recovering costs.
Mr. Lasky asked how much value does staff think has been removed from the area between 61hand
141hAvenue along Main Street. Is it $4 million out of $25 million in value? It is good to see these
sites redeveloped but it is also taking money away from the TIF.
Mr. Davis stated he did not have those numbers but could research. He stated a quick turn around
and time horizon is critical for this site so costs can be recouped as soon as possible.
Ms. Palmeri asked if there would be interest in the RFP.
Mr. Davis stated he believes there will be interest. There was still a lot of unknowns the last time
the RFP was released for this area. Now that the RDA is in control of Pioneer Drive and Decades
property there should be more interest.
Mr. Belter asked at what point will environmental work be completed.
Mr. Davis stated the City was awarded an EPA grant that can be used on Phase I and Phase 11
environmental. There will be limited Phase 11's done on 43 E. 7h Avenue, the rest will wait until
properties are developed.
The item was called. Motion carried 6-0.
There was no further discussion. The meeting adjourned at approximately 4:25 PM.
(Belter/ Bermingham)
Respectfully submitted,
Allen Davis
Executive Director
RDA Minutes March 9, 2020 Page 2