HomeMy WebLinkAbout20071203 - VII-3/VIII-B-3November 29, 2007 VII-3
TO: The Honorable Mayor and Council VIII-~-3
FROM: John Grossman, HRA Director
RE: Public Hearing and Resolution for purchase of 1501 Vermillion Street,
formerly the Clark Oil or Jiffy gasoline station.
State law requires that the City Council hold a hearing and approve the purchase of a
specific parcel by the HRA when a Redevelopment Project Area has not yet been
established. The procedure calls for the HRA to propose the general location of a
Project Area which will be submitted to Council for approval at a later date. The Council
is asked to approve by resolution a fmding that the acquisition will contribute to the
elimination of blight or deterioration with the area.
A public hearing on December 3, 2007 was advertised in the Star Gazette on November
22, 2007.
The general location of a Redevelopment Project Area to be proposed by the HRA is on
both sides of Vermillion Street between Highway 55 and Highway 47. The boundaries
and individual parcels to be included in this area will be recommended at that time. The
one specific parcel that will be included is the property considered for acquisition, 1501
Vermillion Street.
The general location would be within the Midtown District in the Vermillion Street
Corridor Development Guidelines prepared by the EDC, attached. Within a
Redevelopment Project Area, like downtown, the HRA can acquire, clear, remediate and
sell property for development and the HRA can assist the rehabilitation of existing
buildings. If a tax increment district were needed, it would have to be located within the
redevelopment project area.
Unused and functionally obsolete property or uses are considered blight for the purpose
of redevelopment. The station at 1501 Vermillion has been closed since 1999. The
underground gasoline tanks cannot be reused. The building is functionally obsolete with
the possible exception of a gas station use. Documents relating to a finding that the
acquisition of 1501 Vermillion will contribute to the elimination of blight or deterioration
within the area are attached.
• Photographs of the property
• Location map from Dakota County Environmental Services
• Email discussing the existing underground tanks, installed in 1971, and past spills
• List of Building Safety Departments' communications with owner about
maintenance of the property.
The HRA approved a resolution authorizing the execution of a Purchase Agreement,
contingent on Council approval. The purchase agreement includes:
Offer of $185,000 as is.
Purchase is contingent on a survey, environmental phase I and II studies and tests,
and marketable title, acceptable to the HRA.
The owner still has to accept the offered price. Other offers are possible.
Recommendation:
The attached Resolution making the findings and approving the acquisition of the
property by the HRA and the finding that acquisition will contribute to the elimination of
blight.
December 3, 2007
TO: The Honorable Mayor and Council f.
The HRA Board
FROM: John Grossman HRA Director
RE: Acquisition of 1501 Vermillion Street
The realtor has informed us that a stronger (higher) offer has been made for the property,
subject to an environmental report to be completed by December 15.
I will still send the HRA purchase agreement to the realtor in case the other. party decides
against buying. ~ .
The acceptance date of the HRA purchase agreement will be changed from December 14
to December 28. This allows for a delay in their environmental report. Unless the HRA
purchase agreement is accepted it would be void after that date.
Council approval of the acquisition is still needed in case the HRA purchase agreement is
then accepted.
Regardless of the purchase, the HRA will continue working on a proposal for a
Redevelopment Project Area for Council- Consideration. The Area designation will be
still be needed for future development opportunities on Vermillion.
CITY COUNCIL OF THE CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO.
APPROVING THE ACQUISITION OF 1501 VERMILLION STREET BY THE
HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 3, 2007
Council member introduced the following resolution and
moved its adoption:
WHEREAS the City Council adopted a Resolution declaring the need for and
establishing a Housing and Redevelopment Authority (the Authority) in Hastings,
Minnesota on August 3, 1971 pursuant to Minnesota Statutes (469.003) finding that there
exist in the City of Hastings substandard or blighted areas which cannot be redeveloped
without the assistance of government; and
WHEREAS the Authority may within its area of operation (the City) acquire blighted
areas and other property for the purpose of removing or preventing blight, blighting
factors or the causes of blight in order to carry out a redevelopment project (469.002
Subd. 14 and 469.012 subd. l h) ;and
WHEREAS a blighted area means buildings or improvements which by reason of
dilapidation, obsolescence, design, substandard condition, deleterious land use or
obsolete layout or any combination of these or other factors are detrimental to the safety,
health or welfare of the community; and
WHEREAS the Authority may acquire individual tracts of property with the approval of
the governing body when the Authority has determined the location of a redevelopment
project but prior to the City Council approval of the redevelopment plan and project,
provided that a public hearing is held on the proposed acquisition after published notice
and the City Council finds that the proposed acquisition will contribute to the elimination
of blight or deterioration within the area; and
WHEREAS the City Council fmds that acquisition of 1501 Vermillion Street, formerly
known as the Jiffy or the Clark Oil gasoline station, by the Authority will contribute to
the elimination of blight by reason of:
1) The station, located at a major intersection in the center of the City, has been
closed for approximately eight years;
2) Three 7,500 gallon gasoline tanks no longer approved for use, and piping, remain
on the site and have to be removed for reuse;
3) The building is small and out of repair and most of the surface is paved with
concrete and asphalt;
4) The above conditions are obstacles to the redevelopment of the site by private
parties; and
5) That the Building Safety Department has had to require owners of the property to
secure the building and maintain the property;
WHEREAS the site is now offered for sale at a price which enables the Authority to
acquire, remove buildings and tanks and prepare the site for redevelopment by private
parties;
AND WHEREAS the Authority will propose to the City Council a redevelopment project
area generally located within the Midtown District (Highway 55 to County Road 4'~ of
the Vermillion Street Development Guidelines, specifically including the parcel at 1501
Vermillion Street.
NOW THEREFORE BE IT RESOLVED that the Authority is authorized to execute the
Purchase Agreement prepared by the City Attorney for the purchase of the property at
1501 Vermillion.
Council Member
a vote the resolution was adopted:
Ayes:
Nays:
Attest:
seconded the resolution and upon being put to
Paul J. Hicks, Mayor
Melanie Mesko Lee, City Clerk
The Midtown District
The Midtown District begins at 11th Street on the north and
extends to County Road 47 on the south. In 1856 William
LeDuc, thought this section of the corridor would be a fine
place for a home on the outskirts of Hastings in close proximity
to the Vermillion River. LeDuc also saw potential for the
development of a mill in this area. Development slowly crept
south from the downtown area along Vermillion Street until
the 1940's when single family home construction grew along
the corridor.
Following the 1940's the corridor has seen a steady
transformation into a diverse mix of uses. Many of the
homes have disappeared and been replaced with commercial
businesses or office space.
The 50's and 60's development tended to build buildings
closer to the street when Vermillion carried far less volumes of
traffic and parking was on the street.
The 70's and 80's saw a suburban model of development with
buildings setback from the street with off-street parking located
in front of buildings.
More recent development has continued the suburban model
of development with a number of exceptions. The ConAgra
complex and the LeDuc Historical Estate remain a reference to
the history of the community and the Creamery continues to be
a cherished destination.
Appendices
Midtown District -Highway SS to County Road 47.
T'ennillion Street in earlier dms.
- Jiffy Gas Station - 1501 Vermillion St, Hastin
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Parcet lD ;194470016006 ;Year Built :1971
Owner Name 'Bulk Petroleum Cor P :Dwelling Type :CONY STORE
Joint Owner :Home Style
Owner Address , 9653 N Granville Rd Square r=ootage 404
Owner Address 2 i Land Value i $138,700
City/State/Zip Mequon W 53097 :Building Value $47,200
Common Name .!iffy Total Value $185,900
Property House Number ;1501 Tax Capacity $2,968
~ Property Street Name :VERMILLION Special Assessmenfs ' $65
,Property Street Type - ST Total Tax ! $5,020
Property City HASTINGS ;Date of Sale
Use Commercial-Preferred .Sale Value $0
Homestead N Acres ' 0.34
Disc/aimer. Map and parcel data are believed to be accurate, but accuracy is not Map Scale
guaranteed. This is not a legal document and should not be substituted for a title search, 1 inch = 205 feet
appraisal, survey, or for zoning verification.
John Grossman
From: Undem, Cathy [Cathy.Undem@CO.DAKOTA.MN.US]
Sent: Tuesday, November 06, 2007 4:37 PM
To: John Grossman
Subject: Ji#fy Gas Station info -1501 Vermillion St, Hastings
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1501 Vermillion
St-Hastings si...
John,
I have attached a simple map with environmental data I have so far.
3 Tanks are registered for the site under Jiffy: 3 - 7500 gallon tanks for gasoline with
an installed date of 1971, current status - temporarily closed
There is an Minnesota Pollution Control Agency Leak # 8995, related to Clark Service
Station #1816 reported on Nov 9, 1995 closure Oct 21, 1996
There is also a spill referenced to the site MPCA Spill # 20103, Indianhead is reported as
responsible, reported on 9-6-94, gasoline spill.
There is also a Dakota County Waste site # 7412 related to the MPCA reported leak.
According to our file, w is appears o ave s ar e in 001, the Lea. site was
reported but no info was forwarded to the County. Any reports on the leak will need to be
requested from the MPCA files. We have a copy of the closure letter dated October 21,
1996, from the MPCA to Clark refining stating the investigation and/or cleanup was
sufficient at this time. However, the MPCA LUST website indicates that soil or
groundwater impacts are unknown. Not sure what the leak was from, but could have been a
spill or change in pump islands, piping upgrade?
Based on the 2006 Pictometry, it appears that the tanks are located in the NE corner of
the property and that the distribution lines run from the tanks west to the pump islands.
Pumps are gone but islands remain. So best guess is the tanks are there along with the
distribution lines to the islands.
I will send you a list of consultants tomorrow.
Thanks,
Cathy Undem
Hydrgeologist
Water Resources Department
952-891-7532
«1501 Vermillion St-Hastings site map.pdf»
1
City of Hastings
101 East 4th Street
Hastings, Minnesota 55033
(651)480-2342
Code Enforcement Record Page: 1
Citation Number: CDEF2005-170 Printed: 11/28/2007
Citation Date: Inspector: Dawn West
Cited By: Status: Ongoing
Comments: Jiffy Station Grass/Weeds Mowed 5130/05
Letter Sent 5!19/05.
Complaint 6/30/05, 1 Called 7/5/05
David called 7/6/05 said it would be mowed by Sat. 7/9/05 . Was mowed
7/8/05
Placed a call 5/11/06 concerning grass/weeds and a shed behind it that got
broken into and debris is flying all over the neighborhood. Complaint came
from 480-8152
Called 5/15/06 and talked with David and he said nothing would happen till at
least the middle of the week. 1 said the grass needed to be cut ASAP.
Left another message 5/18/06.
Yet another message .5/26/06.
Mowed by the City 6/5/06
John Bliss 1-309-788-4549 one contact. People who sell corn on that corner
1-507-798-2486.
4/5/07 Left a message with John Bliss.
4!9/07 Complaint from 438-3834. Wonders why the city is allowing this
building to stand. Told him I placed a call last week and that I was going to
call again.
Another phone call placed 4/9/07. John said he was going to have his
partner call me. John wanted to know if we had a boarding service in town
that he was in Davenport and wasn't coming to Hastings today. I gave him
Chris Hill's number from Chill Services.
4/9/07 Chris called and said he will be getting to boarding the front up this
week and maybe painting it to blend up a little better-.
4/30/07 Van Parked there. I called the number and told the person to remove
it. He said he would remove it tonight.
5/3/07 Left message for John Bliss to call me. Another message sent 5/4/07.
We are playing phone tag. 5/8/07 says he will be out of town a few days and
will be back Monday 5/14/07 Let him another message.
5/10/07 John Bliss's number he called from 563-322-4550. He said he was
going to call the corn lady and then Chris Hill. 5/10/07 Was mowed.
Was mowed again the week of 14-18th of May.
Violator: Bulk Petroleum Corporation Phone: 309-781-4950
9653 N. Granville Road Fax:
Mequon, WI 53097 Cellular:
Email:
Filer: Scott /Patty Wardell Phone: 651-438-3834
11661 Lockridge Ave Fax:
Hastings, MN 55033 Cellular:
4/9/07 complaint
Email:
Fees: $0.00
Receipts: $0.00
Violations:
Identifier: Section 18.05, Subd. 4 Descriptor: Grass & Weeds on private property
Comments: A. It is unlawful for any owner, occupant or
agent of any lot or parcel of land in the city to allow
any vegetation such as weeds or grass growing upon
any such !ot or parcel or land to grow to a height
greater than 12 inches or to allow such weeds or
grass to go to seed.
B. If any such owner, occupant or agent fails
to comply with this height limitation and after notice
given by the Property Maintenance Inspector, has
not complied within seven days of such notice, the
city shall cause such weeds or grass to be cut and
the expenses thus incurred shall be a lien upon such
real estate. The City shall certify to the Dakota
County Auditor, a statement of cost incurred by the
City. Such amount together with interest, shall be
entered as a special assessment against such lot or
parcel of land and shall be collected in the same
manner as real estate taxes.
Identifier: Section 6.05 Descriptor: Ice and Snow on Public Sidewalks
Comments: SUBD. 1 Ice and Snow a Nuisance. All snow and ice
remaining upon public sidewalks is hereby declared
to constitute a public nuisance and shall be abated
by the owner or tenant of the abutting private
property within 48 hours after such snow or ice has
ceased to be deposited.
Inspections:
Inspection Type: Inspection Number:
Inspection Date: Inspector: Passed? ^
Conditions:
Date: Source: Status:
Code: Description:
Condition:
Graphics:
Description:
Other Fields:
Warning Date:
Warning Date:
Warning Date:
5/29/2003
5/19/2005
Warning Date:
Citation Date:
Citation Date:
Citation Date:
Citation Date:
Warning #
Warning #
Warning #
Warning #
Warning #
Citation #
Citation #
Citation #
Citation #
Comments:
Comments:
Comments:
Comments:
Comments:
Comments:
Comments:
Comments:
Comments:
Grass/Weeds
Grass/Weeds
383
880
0
0
0
0
0
0
0