HomeMy WebLinkAbout1992-227
RESOLUTION NO. 92-227
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WHEREAS, the city council of the city of stillwater was
approached in 1987 by David L. paradeau of the Minnesota Zephyr
(the "Zephyr") to make available to the Zephyr a parcel of land
with which to locate a depot for the housing and operation of a
dinner train that Paradeau planned to bring to the city, and,
WHEREAS, efforts began in 1987 to secure a piece of land that
had been abandoned by the owners thereof in the 1930s after an
easement over the entire area had been acquired for highway
purposes by the State of Minnesota and, it also appeared to the
Council that this site was part of Tax Increment Financing District
Number 1, a district located in Development District Number 1 of
the City (the Downtown Industrial Park Scattered site Redevelopment
District), and, it appeared to the city Council that it would be
impossible or unlikely that the Minnesota Zephyr would locate in
the City without the assistance of the City in acquiring the parcel
and making the parcel available to the Zephyr for redevelopment,
and,
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WHEREAS, it appears that the city expenses associated with the
acquisition of the property are outlined in a report prepared by
the city Finance Director and attached to this Resolution as
Exhibit "A" and that the income received from the property as rent
from the Minnesota Zephyr during the period from 1987 to the
present is outlined in Exhibit "B", and,
WHEREAS, the Council has determined that the expense
associated with the acquisition of this property, including the
necessary condemnation action, the expenses associated with surveys
and other fees, all were necessary to expend because of the unique
nature of the parcel, and,
WHEREAS, it appears that while these expenses were necessary
to make the land available for redevelopment, it would not be
feasible for the full amount of these expenses to be borne by the
Zephyr since with the full amount of the expenses, the
redevelopment of the property by the Zephyr would not be feasible
and would be economically uncertain, and,
WHEREAS, based upon all of the foregoing factors and the files
and records of the City and upon all the testimony offered at the
various public hearings with regard to this matter,
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. That the city convey the property acquired for the
Minnesota Zephyr and attached to this Resolution as Exhibit "C" to
the Minnesota Zephyr and the Mayor and Clerk are hereby authorized
to sign necessary documents to effect this conveyance.
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2.
That the conveyance be conditioned upon the Developer
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of $ 124 ,~oo. 00
an interest rate of
conveying to the City a mortgage in the amount
payable over a period of twenty years with
8 % per annum.
3. That the conveyances described in the foregoing paragraphs
be made, subject to all terms and conditions of the Development
Contract, by and between the parties which contract be and the same
hereby is approved and the Mayor and Clerk are directed to execute
the same on behalf of the city.
Enacted by the City Council of the City of stillwater this 20th
day of October, 1992.
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Wall Abrahamson, Mayor
ATTEST:
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Mary Lout Johnson, rk