Home Page

Time running out for RTC land purchase

Posted Online: 11/13/02

By Evelyn Puffer

The Cambridge City Council Monday night, Nov. 18 will make a major decision on whether the Ýcity should purchase the former Regional Treatment Center property for future development including, in the long range, a community center.

Whether the land purchase is a "one-time golden opportunity," Ý"a long-term investment in the city" similar to the northeast industrial park, Ýor a financial risk, was the subject of a two-hour discussion at a special council meeting Nov. 8.

Mark Ruff of Ehlers & Associates, Inc., the city's financial consultant, commented "it's not a big deal to buy the land but it is important that you have some firm commitments (from developers) before you go out and make any improvements."

Ruff was referring to the $634,200 Ýpurchase price, already reduced from the original $1.5M , explaining to council members that could it be financed through the use of tax increment financing which would be outside the city's debt limit.

While the land is not presently taxable it could be worth as much as $28M once it is developed, meaning a considerable amount of new tax base for the city.

If the city should decide on a wait and see approach to the RTC land, it's possible it could purchase the land for less than the $634,200 state offer if no other purchasers come forward. That approach would mean the city could lose out on the purchase if another developer steps in along with losing control of land uses.

The largest expense in owning the RTC property is demolition and removal of the old brick buildings which contain a substantial amount of asbestos. The tunnel system running under the property and which connects the buildings also contains asbestos.

While there is a move on to save the Administration building for its historic value, none of the other older buildings can be renovated Ýcost effectively.

There is an eight-part rough plan for division of the RTC property the city has been discussing informally.

Area 1 consists of 9.4 acres where the Dellwood North and South buildings are located. There has been some interest in the property by Cambridge Medical Center because it adjoins the CMC site. The hospital would have the option of utilizing the two Dellwood buildings or expanding onto the site.

Area 2 is a 16.7 acre site now housing the Ridgewood building that is expected to be removed. Of the total acreage, only four acres are considered developable because of the 24 foot slopes down to the river. However, it could be used for future expansion of the city's Public Works plant.

Area 3 is 15.7 acres that is proposed to be developed in senior housing at a density of 11-14 units per acres. The other half of the property is sought for development of senior townhomes.

In Area 4 there are 9.8 acres at the northwest corner of Dellwood & T.H. 293 that the city would like to use for a full service community center which could include a library and senior center.

"If a community center is a long term dream," said the city's financial planner Caroline Moe, "then this is a good start."

Commented City Administrator Gordon Heitke, "Having some land the city could give for it (a community center) is the farthest the city has ever been."

Area 5 consists of nine acres west of Area 4 to be used for office space. Of that total, 4.5 acres are considerably below grade level of T.H. 293 and so not considered for development other than as a drainage pond or green space.

Area 6 is 4.6 acres in the southwest portion of the redevelopment site and just west of Area 5. It is currently the site of the Oakview building in which Isanti County has expressed an interest. It was designed to accommodate the 50 parking spaces required under the Cambridge Zoning Ordinance should it be used for county business.

Area 7 is 11.8 acres in the west central area of the RTC site and is the site of McBroom Hall and a portion of Boswell. This is proposed to be developed for high density housing and will most likely contain an affordable housing component.

Area 8 is the last component consisting of 10.4 acres and includes the majority of the Boswell building. The proposed redevelopment plan calls for medium density housing of 6-8 units per acre. The 2.8 acres on the site which are unusable, are behing considered for a stormwater pond.

Cambridge Development Director David Carlberg laid out the pros and cons for council members.

On the positive side, purchase of the property would give the city a chance to reserve land for a community center. The city could reserve land for future Public Works expansion and it would maintain control over future land uses at the site.

If it was owned by the city, removal of the existing, dilapidated, asbestos-filled buildings would be ensured. The city could facilitate redevelopment of the majority of the property moving it onto the tax roles. Finally, the city could achieve a number of community goals by acquiring and redeveloping the property.

If the city delays a decision and loses the property or decides not to proceed, the city will lose the site for a community center, a facility that has headed the wish list of numerous community groups.

The city would also lose the land needed for expansion of the Public Works facility, forcing it into an eventual land purchase elsewhere. If a developer other than the city purchases the land, the buildings could remain on site for years continuing to degrade and cause a visual blight for the community. Also mentioned were the increased problems associated with empty buildings such as vagrancy and vandalism.

The city could also take a financial risk if market conditions turn unfavorable.

"There are developers out there watching Ýand they want a piece of this," Carlberg cautioned.

The city is seeking feedback from city residents but also must make a decision about the purchase soon. That decision could come as early as Nov. 18.