Victoria MN Newspaper

LAND SWAP AGREEMENT

BETWEEN CITY OF VICTORIA AND TERRY HARTMAN

COUNCIL CHOOSES LAKESIDE FOR NEW CITY HALL

A Developer's Land Exchange Agreement that was amenable to both parties -- the City of Victoria and the Hartman Brothers LLC -- came out "late last night," said City Manager Don Uram at the Tuesday, November 12th, city council workshop. Said Mayor Tom O'Connor that evening, "We will need some time for everyone to digest this."

By Monday evening, November 18th, a final draft of the agreement was digested and ready to be voted on by Victoria city councilmembers. The resolution approving the contract for exchange of real estate and private development passed 4-1. Councilmember Joe Pavelko was against it.

The land swap confirms the location for construction of the new Victoria City Hall: Stieger Lake Lane. Closing date of the swap is scheduled for December 2013.

The land that was exchanged included the two city-owned parcels on Victoria Drive (the former Victoria Cafe lot and former Ruth Johnson home) traded for two sections of the Hartman owned property on Stieger Lake Lane.

The long slender Hartman property on Stieger Lake Lane, which totals approximately 15,000 square feet in size, is slated to become the Bayfront Park Plaza on the east end (approx. 3,000 square feet), the new City Hall/Library on the west end (approx. 8,000 square feet), and the Lakeside Project in the middle (approx. 4,000 square feet).

The two end pieces will be owned by the City of Victoria. Hartmans will develop and provide all amenities on the Plaza site, then dedicate it to the City of Victoria. Hartmans plans to construct a two-story building on the middle piece for office, restaurant, and retail space. The City and Hartmans will work together so that the Hartman Building and City Hall building complement each other side by side.

Size of the combined Victoria Drive parcels is 8,500 square feet. A minor subdivision to accommodate a new public Rose Street Parking Lot, will reduce the Victoria Drive site to 7,500 square feet. Hartmans propose to build a two-story 14,000-square foot office and retail building in that downtown location, often called the Main Street of Victoria. Hartmans also built and own the Clocktower building across the street.

It was pointed out that the Victoria Drive site is not shovel ready. For one thing, there is the cost of demolishing the Johnson home. Also, there are costs associated with soil correction, sewer and water extension to the site, storm sewer construction, private utility extension, and burying overhead power lines. Cost to prepare for development is approximately $200,000.

On the other hand, the Stieger Lake site is shovel ready. Hartmans prepared it for development prior to the 2008 downturn in the economy.

The analysis showed that the city's total estimated development cost if it were to build a new City Hall on the Victoria Drive site would be $2,901,305. Total estimated development cost if the city built on the Lakeside site would be $2,916,505.

Said City Manager Don Uram, "Essentially, we've looked at construction costs for the city to build on both sites. The difference between them is minimal. It's essentially a wash. But Tax Increment Financing on the Victoria Drive site makes it more cost-efficient for us to go with the Lakeside property."

Mr. Uram explained that after the city takes advantage of Tax Increment Financing, the Lakeside property will give the city a $356,800 advantage.

Click here to continue Land Swap Agreement.