Agenda Item Title:
Request from Todd Gagne for the City to consider selling the City parking lot adjacent to the Stockgrower’s Building and direct staff to work with Mr. Gagne to negotiate a price and put together an agreement to facilitate transfer of the property.
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/26/2023
City Council Hearing Date:
05/01/2023
Petitioner:
Todd Gagne
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
Todd Gagne has approached the City to gauge its interest in selling the City parking lot between the Stockgrower’s Building and the Property Meld Building. Mr. Gagne is willing to purchase the property at a price to be negotiated. Mr. Gagne was involved with the development of the Property Meld Building and the City previously sold Mr. Gagne and his partners a no build easement to facilitate the construction of the Property Meld Building. The driving force behind his request is that Property Meld is already in need of additional space to expand. In addition to providing for the expansion of Property Meld, Mr. Gagne and his partners would like to incorporate some mixed use elements and an incubator for tech start-ups. If he is unable to obtain the lot, Property Meld would need to look at other options for expansion. If the Council decides to pursue sale of the lot, we will need to develop a plan for how to relocate the current lease holders in the lot. There are some ideas for how this could be accomplished, but no specific plans or recommendations at this time. Property Meld is currently the largest lessee so that will at least help with this aspect of any sale. Some additional considerations are that the current no build easement on the parking lot will make it less attractive and valuable in the future to developers other than Mr. Gagne and his partners. A second consideration is the impact of the sale of this lot in conjunction with the current construction for the Block 5 project. Mr. Gagne has indicated that they would be willing to allow the City to keep using the lot for leased parking until they are ready to begin construction which could be a year or more. The details would need to be worked out, but this could potentially minimize the disruption caused by the development of this site in relation to the development of the Block 5 project.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Funding Source & Fiscal Impact Notes:
If an agreement is reached, the proceeds of the sale would go into the City’s parking fund. However, the City would lose the current revenue from the leases on the lot. Based on my calculations the revenue from the lot is approximately $4,500 per month.
Recommendations:
Origination Recommendation Notes:
No recommendation