01/03/97 Neier/Airport/Athletic Complex Redevelopment PlanJanuary 3, 1997
TO: Clarence Krepps, City Manager
FROM: Glen Neier, City Attorney
RE: Airport Authority--Airport/Athletic Complex Redevelopment Plan
At the Council Workshop of December 30, 1996 the Council requested that I make
inquiries with Mae Nan Ellingson of Dorsey and Whitney, regarding the sale of Haven
Field through negotiations with a private developer. At approximately 12:30 P.M. on
January 3, I received a call from Mae Nan.
I explained to her that the City had advertised the Haven Field for sale on two occasions
and had not received a responsive bid for the property. I indicated the general parameters
of the Advertisement, indicating the City had required earnest money and a minimum
bid of $4.48 per square foot.
In her opinion, the City should again advertise the property for sale, without setting
minimums and without requiring earnest money from prospective developers. She could
not recommend proceeding with private negotiations, when other competing interests
may have had proposals which were not acceptable under the minimums, but might be
viable under a "wide open" offering.
We also discussed a concern that has been expressed as to whether or not the City
could, after creating an Airport Authority, contribute tax increment revenues for
improvements to the airport. In Mae Nan's opinion, once an Authority is created, the
property belongs to the Authority, and that the City could not legally transfer funds to the
Authority for improvements to the Airport.