HomeMy WebLinkAboutResolution No. 2014-010 Rescinding Acquisition Authority for 3944 W 49 1/2 StreetRESOLUTION 2014 -10
RESCINDING ACQUISITION AUTHORITY FOR PROPERTY LOCATED AT 3944 WEST 49-
1 /2 STREET
WHEREAS, the City of Edina City Council ( "COUNCIL ") passed Resolution 2013 -81 on September
17, 2013, to authorize the acquisition of property at 3944 West 49-1/2 Street, (the "Subject Property ") to
expand public parking and possibly relocate the municipal liquor facility, and to further authorize the use of
eminent domain proceedings, if necessary, to acquire the Subject Property;
WHEREAS, the COUNCIL undertook Resolution 2013 -81 only after learning that the owners of the
Subject Property intended to retire and close their business and after attempting to negotiate a voluntary
acquisition of the Subject property; and
WHEREAS, the COUNCIL directed its representatives to both (1) continue negotiations with the
owners of the Subject Property in an attempt to agree upon a voluntary purchase prior to commencing formal
eminent domain proceedings; and (2) to consider other possible alternatives to eminent domain acquisition;
and
WHEREAS, the COUNCIL has studied and continues to study the availability of public parking for the
5011 and France business district and has determined that additional public parking is needed to support the
continued success of this district, to meet the needs identified in the studies of public parking in the 50th and
France area, and to reduce congestion, traffic and waiting periods in existing parking facilities in the area. The
information considered by the COUNCIL included the 201 1 Study by Walker Parking Consultants, which
identified the need for an additional 140 to 300 public parking stalls. The ongoing study also included
consideration of methods to improve the efficiency of the existing parking facilities and consideration of the
costs of constructing new facilities; and
WHEREAS, the acquisition of the Subject Property was determined to be necessary for the expansion
of the North Parking Ramp to provide additional public parking; and
WHEREAS, representatives of the City of Edina ( "City") met with the owners of the Subject Property
and their representatives on several occasions to discuss the possible sale of the property; and
WHEREAS, City commissioned an independent appraisal of the fair market value of the Subject
Property, based on all currently - available information, and the City then offered the owners a price greater
than the fair market value appraisal and included reimbursement requested by the owners for out -of- pocket
costs incurred in preparation to lease their property; and
WHEREAS, the City asked the owners of the Subject Property to consider other creative means to
achieve mutually beneficial goals: a fair value for the owners and new business tenants and additional public
parking for the public's benefit. Among the alternatives were a joint venture to
construct a new facility with first floor retail owned by the current owners and rooftop public parking owned
by the City; sale of "air rights" above the existing building for the City to construct public parking above the
private building; and a request to the property owners to propose any other alternatives they wished to have
considered; and
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov . 952 - 927 -8861 . Fax 952 - 826 -0389
Resolution No. 2014 -10
Page Two
WHEREAS, the owners proposed an alternative whereby an independent third party would purchase
the Subject Property with plans to construct a new facility with improved parking; and
WHEREAS, it has been represented to the City that the owners prefer to pursue this alternative
transaction instead of continuing negotiations with the City because the acquisition price negotiated for this
alternative transaction exceeds the purchase price offered by the City to construct a public parking expansion;
and
WHEREAS, the COUNCIL's ongoing consideration of alternative, cost - effective solutions to the
parking situation in the 50th and France area indicates that other options are available to improve public
parking at a lower cost.
THEREFORE, the COUNCIL finds that:
1) While there is a need for additionai public parking at 50th and France, the COUNCIL must consider
the cost effectiveness of the total project, including land acquisition, construction cost and operating
expenses;
'2) The current anticipated cost of acquiring the Subject Property and constructing an expansion of the
North Parking Ramp on the Subject Property exceeds the resulting benefit to the community; and
3) There are other options to improve public parking in the 50th and France area at a lower cost to
�- taxpayers.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL, that the CO CIL rescinds its authorization to
acquire the Subject Property at 3944 West 49-1/2 Street. h
Adopted by the Edina City Council this 7th day of January, 2014.
Attest:
Debra A. Mangen, dity C e
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA
James B. Hovland, Mayor
CERTIFICATE OF CITY CLERK
I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the
attached and foregoing City Council Minutes is a true and correct copy of the Resolution duly adopted by the
Edina City Council at its regular meeting of January 7, 2014, and as recorded in the Minutes of said regular
meeting.
WITNESS, my hand and seal of said City this _ day of 2014.
Debra A. Mangen, City Clerk