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bCITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Mayor & City Council May 28, 2013 Page 2 • More Job Opportunities: In addition to the construction jobs created by the redevelopment, a minimum of 16 new jobs would be created by the new tenants. • Improving the environment by correcting the contaminated soils from the previously leaking tanks. • Elimination of the risk associated with liquid petroleum and automobile gas. • Improving the aesthetics of the area by introducing higher quality architecture. • Eliminates access points off of Dakota Avenue and avoids traffic conflict. Cons • Potential traffic increase on Dakota and Lake Drive. • Change in the neighborhood mix of retail. TERMS OF THE PURCHASE AGREEMENT Purchase Price: $85,000 ($3.20 per sq. foot x 26,531 sq. ft.) Closing: No later than June 1, 2014 Real Estate Commission: Lotus Real Estate Services, 3% of purchase price or $2,550 Contingency: Sale is contingent upon the project receiving site plan approval from the city Staff supports the proposed redevelopment and the attached purchase agreement. In most cases, cities would provide monetary support for a redevelopment project similar to this request; specifically, assistance with soil corrections or relocation of utilities. Selling a portion of the city's excess right -of -way makes the project feasible for the city and developer. Staff will be looking for feedback from the city council on the proposed redevelopment and purchase agreement at Tuesday's work session. ATTACHMENTS 1. Purchase Agreement dated May 7, 2013 2. Air Photo of the City's and Sinclair Properties 3. Proposed Redevelopment Site Plan 4. Proposed Taxes on an 8,000 sq. ft. Retail Center gAadmin \tg \sinclair \cc report 5- 28- 13.docx CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow E. Any encumbrances shown on the title commitment to which Buyer has not objected to prior to the expiration of the twenty (20) day period provided under Section 9 of this Agreement ( "Permitted Encumbrances "). 5. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. A. Prior Years' Delinquent Real Estate Taxes and Delinquent Special Assessments Delinquent real estate taxes payable in years prior to the year of Closing and delinquent installments of special assessments certified for collection with real estate taxes payable in years prior to the year of Closing, together with penalty, interest and costs, shall be paid by Seller not later than the Date of Closing. B. Real Estate Taxes Payable in the Year of Closing Real estate taxes payable in the year of Closing shall be prorated between Seller and Buyer on a calendar year basis to the Date of Closing. Buyer shall assume installments not paid at Closing. Seller shall pay penalty, interest and costs on any delinquent installment of taxes and special assessments payable by Seller in the year of Closing. C. Deferred Real Estate Taxes Seller shall pay on Date of Closing or provide for payment of any deferred real estate taxes (including "Green Acres" taxes under Minn. Stat. § 273.111) payment of which is required as a result of the Closing of this sale and the recording of the Deed. Provision for payment shall be by payment into escrow of 1.5 times the estimated payoff amount of the deferred taxes. D. Certified Special Assessments All installments of special assessments certified for payment with the real estate taxes payable in the year of Closing shall be paid by Seller at Closing. E. Pending Special Assessments Seller shall provide for payment of special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by the City Council or other governmental authorities. Seller's provision for payment shall be by payment into escrow of 1.5 times the estimated amount of the assessments. If a special assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing, Buyer may, at Buyer's option: (1) Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or (2) Require Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of the real property, which increase shall be the same as the estimated amount of the assessment; or (3) Rescind this Agreement, in which case all Earnest Money shall be refunded to Buyer. 2 F. All Other Levied Special Assessments Seller shall pay on the Date of Closing all other special assessments levied as of the date of this Purchase Agreement. 6. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings are entirely within the boundary lines of the Property. Seller warrants that there has been no labor or material furnished to the Property for Seller for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller warrants that the Property is not subject to a lien for Medical Assistance or other public assistance. 7. ACCESS PRIOR TO CLOSING. Upon reasonable notice to Seller, Buyer and Buyer's authorized agents shall have the right during the period from the date of this Agreement to the Date of Closing to enter in and upon the Property in order to make, at Buyer's expense, surveys, measurements, soil tests and other tests that Buyer shall deem necessary. Buyer agrees to restore any resulting damage to the Property and to indemnify, hold harmless and defend Seller from any and all claims by third persons of any nature whatsoever arising from Buyer's right of entry hereunder, including all actions, proceedings, demands, assessments, costs, expenses and attomeys' fees. Buyer shall not perform any invasive testing of the Property without Seller's prior written consent. Seller's consent may be conditioned upon any restrictions that Seller deems necessary. Buyer shall provide to Seller a copy of any such surveys, measurements, soil tests or other tests within five (5) days after receipt. 8. POSSESSION. Seller shall deliver possession of the Property not later than the actual date of closing. 9. TITLE INSURANCE. Within fifteen (15) days following the date of this Agreement, Seller, at its expense, shall furnish a title insurance commitment in the full amount of the Purchase Price issued by Land Title, hic. ( "Title Company ") or another title insurance company reasonably satisfactory to Buyer, certified to date to include proper searches covering bankruptcies, state and federal judgments and liens, by which said company commits to issue its policy of title insurance that insures that at closing Buyer shall have good, marketable and insurable title of record to the Premises, free and clear of all liens, encumbrances, leases except for the following: (i) All declarations, covenants, conditions, drainage and utility easements currently of record; (ii) Zoning and all other governmental ordinances, regulations, requirements and laws; (iii) Those exceptions shown on the Commitment; (iv) Easement in favor of Northern States Power Company dated December 22, 1097, filed 1/8/1988 as Document No. 93091; (v) License in favor of U.S. Communications, Inc. dated June 27,1991, filed July 3, 1991 as Document No. 125470; (vi) Driveway Easement dated March 19, 2005, filed April 6, 2005 as Document No. A411280; Buyer shall be allowed twenty (20) business days after receipt of the title commitment and land survey for examination of title and making any objections, which shall be made in writing or deemed waived. 10. TITLE CORRECTIONS AND REMEDIES. Seller shall have twenty (20) business days from receipt of Buyer's written title objections to notify Buyer of Seller's intention to make title marketable within one hundred twenty (120) days from Seller's receipt of such written objections. If notice is given, payments hereunder required shall be postponed pending correction of title, but upon correction of title within ten (10) days after written notice to Buyer, the parties shall perform the Agreement according to its terms. If no such notice is given, or if notice is given but title is not corrected within the time provided for, this Agreement shall be null and void, at the option of Buyer, and in such case, neither parry shall be liable for damages hereunder to the other. 11. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph 1, above and if mailed, are effective as of the date of mailing. 12. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 13. WELL DISCLOSURE. [Check one of the following: ] XX Seller certifies that Seller does not know of any wells on the Property. Wells on the Property are disclosed by Seller on the attached Well Disclosure form. 14. DISCLOSURE OF INDIVIDUAL ON -SITE SEWAGE TREATMENT SYSTEM. [Check one of the following: J XX Seller certifies that Seller does not know of any individual on -site sewage treatment systems on the Property. _ Individual on -site sewage treatment systems on the Property are disclosed by Seller on the attached Disclosure form. 15. SELLER'S COVENANTS, REPRESENTATIONS AND WARRANTIES. A. Seller, as part of the consideration therefore, represents warrants, and covenants with Buyer and its successors and assigns that: (1) Seller has the present full authority and power to execute this Agreement and to close the sale of the Property. (2) That Seller has not received notice of (a) any actual or pending litigation or proceeding by any organization person, individual or governmental agency against Seller with respect to the Property or against the Property, (b) any violation of the Property's compliance with applicable fire safety laws, building code ordinances, zoning ordinances or any similar statutes, ordinances, laws, rules or regulations, (c) any condition, defect or inadequacy which, if not corrected, would result in the termination of, or increase in the cost of insurance coverage, (d) any proceedings which could cause the change, redefinition or other modification of the zoning classifications or of other legal requirements applicable to the Property or any part thereof, or (e) any pending or threatened condemnation proceeding that would affect the Property. (3) Except as set forth in Section 9, on the Date of Closing there will be no (a) outstanding leases or occupancy agreements, or (b) outstanding contracts made by Seller for any improvements to the Property which have not been fully paid for or for which Seller shall make arrangements to pay off except such contracts as shall be agreed upon by Seller and Buyer for improvements to the Property and Seller shall cause to be discharged all mechanic's or materialmen's liens arising from any labor or materials furnished to the Property prior to the Date of Closing. (4) Seller will not, without the prior written consent of Buyer: (a) construct or enter into any agreement or commitment to construct any improvement or alteration to the Property; or (b) enter into or consent to any lease, easement, covenant or other obligation affecting the Property or alteration to the Property except as provided herein. (5) Seller shall deliver to Buyer a written notice of the commencement of any legal action by any governmental authority or third party affecting the Property and will make no concessions or settlements with respect to any such action without Buyer's prior written consent. (6) Seller is not a foreign person, as such term is defined in Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and shall deliver an affidavit to that effect at closing, which shall be in form and substance reasonably acceptable to Buyer. B. All of Seller's covenants, representations and warranties in this Agreement shall be true as of the date hereof and of the Closing Date, and shall be a condition precedent to the performance of Buyer's obligations hereunder. C. PROTECTED HISTORICAL SITES. [Select either (1) or (2) below. J Seller represents that Seller does not know if there are historical, native CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow (5) Well Certificate If there is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. (6) Certification A certification that the representations and/or warranties made by Seller is materially the same as were in existence on the date of this Agreement or noting any changes thereto; and (7) Other Documents All other documents reasonably determined by either party or the title insurance company to be necessary to transfer and provide title insurance for the Property. B. At the Closing, Buyer shall execute and deliver to Seller the following: (1) All documents reasonably determined by either party or the title insurance company to be necessary to provide title insurance for the Property; (2) Payment of the Purchase Price. 19. CLOSING COSTS. The costs relating to the closing of this transaction shall be paid as follows: A. Buyer shall pay: (1) Recording fee for the Limited Warranty Deed; (2) One -half of the closing fee charged by the Title Company; and (3) The premium for owner's title insurance, including survey coverage. B. Seller shall pay: (1) All costs of obtaining a title insurance commitment; (2) State deed tax; (3) One -half of the closing fee charged by the Title Company; and (4) Conservation fee attributable to the Limited Warranty Deed 20. ADDITIONAL TERMS. A. Buyer's Contingencies Buyer's obligations under this Agreement are contingent upon the following ( "Buyer's Contingencies ") expressly contingent upon Buyer's satisfaction with each of the following prior to Closing: CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow with respect to the Property or any part thereof, or as to the workmanship thereof, or the absence of any defects therein, whether latent or patent. 21. ADDENDA. Attached are no addenda which are made a part of this Purchase Agreement. 22. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 23. MULTIPLE ORIGINALS. Seller and Buyer have signed two (2) originals of this Purchase Agreement. 24. Real Estate Commission. Seller is responsible for a 3% sales commission to Lotus Real Estate Services. The City agrees to sell the Property for the price and terms and conditions set forth above. SELLER: CITY OF CHANHASSEN Dated: 2013 The Buyer agrees to buy the Property for the price and terms and conditions set forth above. BUYER: CENTER COMPANIES, LLC B ' Dated: S = 2013 10 EXHIBIT A PROPERTY: Outlot One (1), Chanhassen Estates, Carver County, Minnesota EXCEPT that part of Outlot One (1) Chanhassen Estates, described as follows: Beginning at the intersection of the East line of said Outlot 1, with a line hereafter described as "Line A" (said Line "A" is a line 50.00 feet Southeasterly of, measured at right angles to and parallel with that part of the Southerly right of way line of State Highway No. 5, as shown on said plat which has a radius of 2764.79 feet); thence South along the East line of said Outlot 1, a distance of 200.00 feet; thence West at right angles to said East line, a distance of 150.00 feet; thence Northwesterly to a point on said "line A ", distant 200.00 feet Southwesterly, measured along said "Line A" from the point of beginning; thence Northeasterly along said "Line A" a distance of 200.00 feet to the point of beginning. 11 EXHIBIT B ESCROW AGREEMENT The undersigned, Land Title, Inc. ( "Escrow Agent ") acknowledges receipt of One Thousand and No /100 Dollars ($1,000.00) (the "Deposit') to be held by it pursuant to the terms of the Purchase Agreement attached to this Escrow Agreement. Escrow Agent agrees to hold the Deposit in accordance with the terms of the Purchase Agreement and disburse the same strictly in accordance with such terms. Escrow Agent shall invest the Deposit in such interest - bearing accounts or instruments as shall be approved by both the Buyer and the Seller. Interest shall accrue for the benefit of Buyer and shall become part of the Earnest Money. Seller represents that its Tax I.D. Number is as follows: 41- 0885331. Buyer represents that its Tax I.D. Number is as follows: The sole duties of Escrow Agent shall be those described herein, and Escrow Agent shall be under no obligation to determine whether the other parties hereto are complying with any requirements of law or the terms and conditions of any other agreements among said parties. Escrow Agent may conclusively rely upon and shall be protected in acting upon any notice, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. Escrow Agent shall have no duty or liability to verify any such notice, consent, order or other document, and its sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Agreement unless first indemnified to its satisfaction. Escrow Agent may consult with respect to any question arising under this Agreement and shall not be liable for any action taken or omitted in good faith upon advice of such counsel. The fees and charges of the Escrow Agent shall be paid as follows: one -half of such fees and charges shall be paid by Seller and one -half of such fees and charges shall be paid by Buyer. ESCROW AGENT: LAND TITLE, INC. Dated: SELLER: 12 CITY OF CHANHASSEN Dated: C C CENTER COMPANIES, LLC Dated: By: 13 CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952 227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.2271120 Fax: 952.2271110 Recreation Center 2310 Coulter Boulevard Phone: 952 2271400 Fax: 952227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax. 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chaphassen.mn.us MEMORANDUM TO: Mayor & City Council FROM: Todd Gerhardt, City Manager DATE: May 28, 2013 �1Z SUBJ: Discuss Purchase Agreement with Center Companies for Redevelopment of Ivan's Sinclair Gas Station, 7910 Dakota Avenue • Attached please find a Vacant Land Purchase Agreement between the City of Chanhassen and Center Companies (Attachment #1). Center Companies President Ben Merriman has been active in redeveloping sites in Chanhassen for the past several years, including Goodwill and Haskell's. Mr. Merriman is now working on the redevelopment of the Sinclair Gas Station site at 7910 Dakota Avenue (Attachment #2). PROPOSED REDEVELOPMENT PLANS Currently, the Sinclair gas station sits on approximately .6 acres of land. It operates as a gas station/convenience store and sells liquid petroleum out of a 2,000 - gallon bulk storage tank just north of the store. The property is zoned Highway Business and the site conforms to all of the city's zoning regulations with the exception of site coverage percentage. Center Companies is proposing to demolish the convenience store and remove both the liquid petroleum and the underground gas tanks. In its place, Center Companies would build an 8,000 sq. ft. retail center that would accommodate three tenants. The tenant mix includes a coffee shop with a drive -thru, specialty sandwich shop, and the third tenant is unknown at this time (Attachment 43). To accommodate the 8,000 sq. ft. building, the developer intends to purchase a portion of the city -owned property adjacent to the site. PROS AND CONS OF THE REDEVELOPMENT Pros • Could boost tax revenues (Attachment #4): 2012 Tax Estimates: - Current Development Pays - After Redevelopment Total City Portion $17,580 $1,494.81 $48,088 $4,800.00 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow