AGENDA MEMO

City Council

May 2, 2011

ISSUE STATEMENT

Consideration of a resolution to authorize the City Administrator to enter into an agreement with Great Dane to sell the property at 1033 S. Frontage Road for $660,000.

RESOLUTION

BACKGROUND/HISTORY

The City of Darien purchased property at 1033 S. Frontage Road in 2000 for use by the City, local school districts and the Darien Park District as a joint venture. Since this time districts have made other building purchases and arrangements and were no longer interested in utilizing the property. The City of Darien sold off a portion of this property in 2004, with the remaining property rented as semi-trailer storage until the City could determine if it would eventually be needed by our Municipal Services Department.

The owner of the property the City sold in 2004 agreed to sell his property to Great Dane, a company that manufactures and sells semi-trailers. Great Dane intends to use the site as a sales lot for their heavy equipment. A sales lot is a better use for the property because it would generate sales tax and it would house newer semi-trailers. Currently the land is divided into parking spaces that are rented individually, often to old semi-trailers who leave the property in a messy condition. Great Dane would also like to purchase the City’s property, and offered $650,000 for the land locked portion. An appraisal was done for the property by Darien, which came to $660,000, which Great Dane agreed to pay.

STAFF/COMMITTEE RECOMMENDATION

Staff recommends approving this resolution.

ALTERNATE CONSIDERATION

Not approving the resolution would be an alternate consideration.

DECISION MODE

This item will be on the May 2, 2011 City Council meeting for formal approval.