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AGENDA RECOMMENDATION |
Consent Calendar 5.G.
City Council Regular Meeting
- Meeting Date:
- 08/10/2026
Agenda Item:
Set August 24, 2026, as the date of the public hearing for an ordinance authorizing the conveyance of real property at 116 E. Walnut Street.
Recommendation/Action(s):
Motion setting date of hearing.
Summary:
On May 24, 1993, the City of Mankato entered into a Ground Lease with Love-It Furniture for the property located at 116 E. Walnut Street and 120 E. Walnut Street. On August 10, 2004, the Ground Lease was assigned to Brennan Properties, LLC, who had purchased the adjacent property at 124 E. Walnut Street. The current annual rent is $4,125. The property encompasses 7,851 square feet and consists of an asphalt parking lot that provides off-street parking for customers of the adjacent property at 124 E. Walnut Street. The lessee owns the adjacent property at 124 E. Walnut Street and has requested to purchase 116 E. Walnut Street and 120 E. Walnut Street.
The existing surface parking lot had deteriorated over time and was in poor condition. The lessee recently completed improvements to replace the parking lot at its own expense and, in conjunction with those improvements, has requested to purchase the property for $1.00.
The City acquired 116 E. Walnut Street in 1991 after the County Auditor foreclosed on the property for nonpayment of taxes. On September 14, 1992, the City Council adopted a resolution authorizing the acquisition of 120 E. Walnut Street and designating the property as development property. During research on the acquisition of 116 E. Walnut Street by the City in 1991, staff could not locate a resolution designating the property as development property under Section 10.08 of the Mankato City Charter. This is typically completed at the time of acquisition and authorizes the City to lease or convey land by resolution without the necessity of a future hearing and ordinance. Therefore, to ensure there will not be future title issues and proper procedure is being followed, staff is proposing to set date of hearing authorizing the sale of 116 E. Walnut Street by ordinance per Section 2.14 of the City Charter. This is the other method under the Charter to authorize the disposition of property, besides the resolution designating development property at the time of acquisition.
At the hearing on August 24, the Council will be asked to first consider the attached ordinance, and then a resolution authorizing the City Manager to enter into a purchase agreement with Brennan Properties, LLC for the sale of 116 E. Walnut Street and 120 E. Walnut Street for the purchase price of One Dollar ($1.00).
The existing surface parking lot had deteriorated over time and was in poor condition. The lessee recently completed improvements to replace the parking lot at its own expense and, in conjunction with those improvements, has requested to purchase the property for $1.00.
The City acquired 116 E. Walnut Street in 1991 after the County Auditor foreclosed on the property for nonpayment of taxes. On September 14, 1992, the City Council adopted a resolution authorizing the acquisition of 120 E. Walnut Street and designating the property as development property. During research on the acquisition of 116 E. Walnut Street by the City in 1991, staff could not locate a resolution designating the property as development property under Section 10.08 of the Mankato City Charter. This is typically completed at the time of acquisition and authorizes the City to lease or convey land by resolution without the necessity of a future hearing and ordinance. Therefore, to ensure there will not be future title issues and proper procedure is being followed, staff is proposing to set date of hearing authorizing the sale of 116 E. Walnut Street by ordinance per Section 2.14 of the City Charter. This is the other method under the Charter to authorize the disposition of property, besides the resolution designating development property at the time of acquisition.
At the hearing on August 24, the Council will be asked to first consider the attached ordinance, and then a resolution authorizing the City Manager to enter into a purchase agreement with Brennan Properties, LLC for the sale of 116 E. Walnut Street and 120 E. Walnut Street for the purchase price of One Dollar ($1.00).