Possible interest in acquisition of City-owned land - Poplar Street.

City Manager report and comment. 

The property south of the intersection of Sibley Parkway and Poplar Street has been owned by the city since the mid 1990's when a large portion was acquired from Brad Reeves as part of an economic development project for the acquisition of another building in the area by the seller (July 14, 1997 Council action). It was expected that the property could be used in the future as part of the Patterson Redevelopment Project (Sibley Parkway). In the interim, the property has been used for seasonal storage as part of the city's snow removal operations from the City Center. Public Works has also used the property for staging during seal coating and other street maintenance activities. At this time, the property is not listed for sale.   
 
Recently, a nonprofit expressed interest in the property for development of a facility and asked about pricing. In light of the recent request for proposals process associated with 1315 Stadium Road, which similarly was not listed for sale, it is staff's assumption that a request for proposals process would be the preferred option if the Council is interested in disposition. However, in this case, consideration of the goals for the Patterson Redevelopment District (Sibley Parkway) would be a factor in the request for proposals.  
 
Several considerations for the property include: 

1. The city has not conducted any environmental investigation of the property and, considering the location, it is likely that some brownfield conditions may exist, including substandard soil conditions. 
2. There are most likely title issues to resolve with the property as it is a collection of purchased property, vacated railroad right-of-way, and unimproved right-of-way.  
3. The property is zoned M-1. Land use and zoning considerations have not been pursued as the property was not previously targeted for disposition.
4. If the property were sold, an alternate site for snow storage would need to be identified. The only other site available is part of a remaining lot in Sakatah Industrial Park (west side of the BMX property). The property is used for overflow storage when the Poplar Street site is full. Hauling costs are considerable considering current fuel prices.  
5. All of the property is not available for development. Approximately the northern .5 acres is reserved for a future street project associated with the eventual replacement of the Mound Avenue Trestle. When that project occurs, the grade of Poplar Street will be lowered to accommodate clearance under the trestle to provide emergency access. The project would involve significant grading that would utilize part of the property.  
6. The property was held by the city with the expectation that it could be part of a larger redevelopment project, possibly in connection with the building to the east. When that building was recently acquired, staff informed the purchaser of the long term goals for the area and while the current use of the building conforms to current zoning standards, the goals of the Patterson Redevelopment Area contemplated transition to possibly retail, housing, or office use.  

Staff is seeking direction from the Council regarding the inquiry. Options may include an RFP process or declining to consider property disposition at this time due to other factors as summarized above.