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HomeMy WebLinkAbout06.12.2000• • COUNCIL WORK SESSION June 12, 2000 4:45 p.m. Council Chambers Members present: Getty, Anders, Jordan, Krizek, Murphy, Gronen, Berry. Moved by Jordan, seconded by Berry that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Don Temeyer, City Planner, stated that the purpose of the meeting was to review the sale of alleys abutting property located at the northeast corner of Linden and Fowler Street to Aarmark. The two alleys include: The interior alley located off of Linden Avenue, similar to the other alley portions previously vacated in this vicinity as Aramark has now purchased the property on both sides of the alley. Also the alley that runs along the railroad right-of-way which runs along the northerly border of the Aramark property as Aramark has also acquired the home on this block. Aramark will be adding onto their existing building with a 20,000-30,000 sq. ft. addition and additional parking improvements and area. Aramark thinks this will help to alleviate parking concerns with their close proximity to residential uses in the area. The vacation of the alley portions will allow them to better set up the truck trafficking for their operation while removing portions of right-of-way not needed for any public purposes. Larry Bedard, owner of the storage building north of the railroad right-of-way area, contends that the northerly most alley is essential to his own truck trafficking to his site and will diminish the operation and value of his business if vacated. Councilperson Getty stated that the council does not have any concerns regarding the short "L" shaped alley, that will be sold to Aramark, but Mr. Bedard does not want the city to sell the alley lying along the railroad. Councilperson Getty suggested making separate motions for the two alleys. Councilperson Jordan asked Aramark if the city sells the alley along the railroad to them will they agree to put in writing that they will not close the alley. Jon Wagner, Aramark Production Manager, stated that Aramark has no intention of closing the alley, that they need that for their truck traffic. Mr. Wagner stated that he does not have the authority to agree to put that in writing. Fire Chief Frank Magsamen noted that the Fire Department needs to have access to the building as part of the Fire Code, but that doesn't mean Aramark will have to allow the public to use the alley. Larry Bedard stated that he does not want anything obstructing traffic. Mr. Bedard asked that Aramark give a written commitment that he will have access to the alley and all future owners will have access to the alley, 24 hours per day, seven days per week. Councilperson Gronen stated that in all the meetings with Aramark they will not agree to put that in writing. Mr. Wagner stated that they will leave the alley open, but they will not write a public document to leave the alley open as Aramark's legal counsel is concerned with liability. Councilperson Krizek asked if there is a reason 100 percent needs to be vacated, would a portion be enough to construct the building. Mr. Temeyer stated that the way the land is laid out, it is all or nothing. Mr. Temeyer noted that the Planning, Programming and Zoning Commission recommended approval of the sale and conveyance. Mr. Bedard stated that closing the alley diminishes the value of his warehouse because there won't be easy access. Council Work Session June 12, 2000 Page 2 Mr. Temeyer stated that the area to be vacated is approximately 17,016 sq. ft., with an average assessed value of $0.63 per sq. ft., which would equate to an asking price of $10,720.08. However, this is an industrial pieces of property which could generate about $20,000.00 in taxes per year, so it seems like a reasonable thing to do to sell it for $1.00 to get in on the tax rolls. Councilperson Jordan stated that he objects to selling the alley as it could jeopardize someone else's business. Councilperson Jordan commented that he would agree to selling it to Aramark if they will put in writing that they will not close the alley. The request of Main Street Waterloo to extend the city's loan guarantee with Community National Bank in order to finish the Regional Business Center Parking lot from $300,000.00 to $425,000.00 was reviewed. Randy Stultz, Main Street Waterloo, stated that the city agreed to back a loan to Main street for $300,000.00 to purchase the Iowa Business Machine building on Lafayette and develop a parking lot on the property. The building has been purchased, but the quotes to remove the building and develop the parking lot are higher than originally estimated. Quotes for the demolition and parking lot are now requiring an additional $125,000.00 to make the project a reality. The following are costs for the total demolition of the IBM building and constructing a 50 stall parking lot: IBM Building Purchase $200,000 Demolition of the IBM Building $ 85,000 Parking Lot Construction $117,000 Miscellaneous $ 23,000 TOTAL $425,000 Mr. Stultz reported that the parking lot plans have been developed by the city's Engineering Department and show 50 leasable parking stalls. The parking stalls will be leased for $58 per month per stall, generating $2,900.00 per month income. This parking, plus $280.00 per month income from the leased main street space in Gilmor & Doyle will generate $3,180.00 per month to repay the $425,000.00 loan over a 30 year period. A verbal agreement has been reached with the current lender to insure that the money is available should the city agree to back the additional amount. Councilperson Jordan stated that when the council agreed to guaranty the $300,000.00, they were told that $300,000.00 was the worst case scenario. Mr. Stultz stated that Main Street is begging the council's forgiveness for someone else's mistake. Mr. Stultz commented that he cannot say that they won't come back. Mr. Temeyer stated that the loan guaranty will need to be put on the council agenda once everyone is in agreement. Mr. Temeyer commented that if the city agrees to the loan guaranty, we will need a second on the loan. Councilperson Getty stated that he would like time to digest the information and suggested that this item come back to the council in two weeks. With no further business before the council, it was moved by Jordan, seconded by Getty that the meeting be adjourned at 5:16 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk • •