The City Council will consider adopting a Resolution of Intent to sell property located at 10 S. 26th Street.  The property contains the "Galles Building," which is located on the northeast corner of the block that also contains the Skatepark and the L&L Building (aka Arcade).  The City purchased the property in 1999, intending to aggregate property on the entire block for a large redevelopment project.  After building the skatepark and associated green space, a parking lot and being unable to acquire the L&L Building, aggregating the land for a large redevelopment project may not be feasible.  Therefore, this corner property may be better suited for redevelopment by restoring and reusing the building or demolishing it and providing land for a new structure.  At least three potentially interested purchasers contacted the City and expressed an interest in reusing the building for offices and/or residences.  Staff recommends offering up to two (2) full lots for redevelopment in case the additional land is needed for parking or other uses related to the building.  If the Council adopts the Resolution of Intent to dispose of the property, staff will advertise for sealed bids, notify surrounding property owners about the pending sale and schedule a public hearing for July 23, 2012 for the Council to consider the bids and hear comments on the proposed land sale. 

• Adopt the Resolution of Intent to dispose of the property, request and accept sealed bids and conduct a public hearing on July 23 to consider selling to one of the bidders, or
• Not adopt the Resolution of Intent.  The City will continue owning the property and will be responsible for maintaining it or eventually demolishing the structure due to its deterioration.  The City owns the remainder of the block except for one lot that contains the L&L building on the corner of Minnesota and 1st Avenue South.  If the Council chooses not to sell the Galles building, it could be incorporated into a redevelopment project that includes the remaining City property on the 1/2 block or full block (including skatepark).