Victoria MN Newspaper

VICTORIA TO TAKE PROACTIVE APPROACH

AND DETERMINE BEST USE OF THE 13.5 ACRES

Council voted unanimously on August 11th to decline an offer from Ron Clark Construction and Design for the 13.5 city-owned acres on the west side of downtown Victoria.

The most recent two-part offer from Clark included the purchase of part of the land for $700,000 to accommodate 44 townhomes. Within two years, he would purchase the rest of the acreage for $560,000 to accommodate 70 units of multi-family/senior housing.

Interim City Manager Ed Shukle said there had also been interest from Kerber Homes to build townhomes on the acreage.

Mr. Shukle posed several questions in regard to the 13.5 acres such as: Is there a demand for townhomes and twin homes? Do we need additional assisted living and memory care facilities? Has the Victoria Business Association been given adequate opportunity to provide input regarding the land use of that acreage? What retail or other commercial services are needed in Victoria? Has the Planning Commission provided input? What does the community think about potential land uses of this property?

He added, "Have all the land use alternatives been discussed? It's a prime piece of property. We should look at the highest and best use."

Mr. Shukle said a major concern for retail and commercial is access to the property from Hwy 5 and/or County Road 11. "A right-in/right-out might be the only thing that works," he said

Said Mayor Tom O'Connor, "That land has sat there for years with no interest. You could hear crickets chirping. This past year there have been some nibbles. I propose going on the offensive. What do we want on the site? Whatever gets built there will be there a long time. We're not in a position yet to even have an intelligent conversation. There is no interest at this time from a commercial developer."

"I agree with you, Mr. Mayor," said Councilmember Jim Crowley. "We have been on the defensive. I share the thoughts of Mr. Gregory, but building the new City Hall there would have added $2 million in costs and there was a risk nobody else would come there. I like what our city manager suggested. The access from two roads is a major concern for commercial. We have to see if that can be rectified."

City Engineer Cara Geheren said the city hasn't talked to MnDOT about access there to Hwy 5.

Said Councilmember Lani Basa, "We do not have a clear vision for downtown Victoria. With the state of change in our city, it's a good time to look at these things. Has money been invested in market studies? We have a number of questions beyond those posed. There is work to be done before we even have an appraisal ... I'd like to see it tied to the comprehensive plan. I'd rather look at the whole picture, not just the 13.5 acres."

Said Councilmember Tom Strigel, "I don't feel any urgency to sell the property. To do anything hastily is a disservice to the citizens. We have to make sure its end use delivers the best possible result to the city. As our rooftops grow, so will developer interest. To rush something now would miss opportunity. The Planning Commission and others need a voice to help guide this. Once it's gone, it's gone and we won't get it back. Down the road we could end up selling the new City Hall as a commercial building and still end up with City Hall on the 13.5 acres."

Said Councilmember Joe Pavelko, "I'm definitely not interested in building roads on that property in order to interest somebody in coming there."

"We need to address this with a sense of urgency," said Councilmember Crowley. "With that land sitting idle, we are losing money. It's important to find a use for it. We're waiting for the best offer and not getting it."

Said Mayor O'Connor, "There are enough smart people in this city to find an answer. It's time to take a more active approach. We need to determine the best use of that site. What ultimately do we want there? Then we go aggressively to market it. We need some expert advice. There's a whole host of pretty serious questions to answer."

"We have to do our due diligence," said Mr. Shukle. "It'll take analysis by staff and others."

City Attorney Bob Vose said there is an end to the current nontaxable status of the 13.5 acres. After 15 years, it becomes taxable, he said, and 2008 is the trigger date since 2008 was the date of formal transfer to the city from Three Rivers Park District.

In the meantime, city staff will move forward with some of the ideas brought up by councilmembers, and tell Mr. Palmiter, the city's broker, that the city is not interested in selling at this time.

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