01-06-2014 Council Minutes Special Meeting

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MINUTES OF THE SPECIAL ORONO CITY COUNCIL MEETING Monday, January 6, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 19 of 27 (1. #13-3638 and #13-3639 SOURCE LAND CAPITAL, LLC (PAT HILLER) O/B/O GRANT WENKSTERN (LAKEVIEW GOLF), 405 NORTH ARM DRIVE – COMPREHENSIVE PLAN AMENDMENT AND SKETCH PLAN REVIEW, Continued) Coyle noted one of the consultants this evening suggested that his professional experience was based in part on golf courses located in the City of Eagan. Coyle stated what that consultant did not say is that both of those golf courses went through very contentious processes and both of them are now under development for residential development because the landowner could not make a go of it. The City had no other option, did not have the resources to purchase the property, and the landowner was entitled to be provided with a reasonable economic use, which is what is being requested this evening for the Wenksterns. Grant Wenkstern, Lakeview Golf Course, stated he and his wife, through a family corporation, are the owners of the Lakeview Golf Course property. Wenkstern indicated Lakeview Golf Course was initially built by his father in 1956. Wenkstern indicated he started working at the business when he was a boy, which continued through his school years and when he returned from Vietnam in 1968. The property was eventually acquired from the family in 1979. Wenkstern indicated he has earned a living operating Lakeview and Red Oak Golf Courses for his entire adult life and that over that time he has paid substantial real estate taxes and have been good members of the community. As most people know, the game of golf has been declining in popularity in recent years across the nation. Golf courses, which were profitable, no longer are. Lakeview is no exception. Wenkstern stated for the past five years, his wife has taken no salary and he has taken a minimal one. Each year the losses have increased. Over the past few years, it became evident that using this property as a golf course was no longer viable. Wenkstern stated they realized they would need to sell Lakeview as well as Red Oak in order to derive the benefit of selling the land. Wenkstern stated if they are not allowed to complete the sale of the property this spring, his family will sustain substantial hardship because the golf course will continue to lose money and they will continue to be required to make mortgage payments, pay taxes, insurances and other upkeep expenses associated with the golf course. Wenkstern noted if the property is no longer used as a golf course, they will be required to pay Hennepin County deferred open space taxes in excess of $950,000. Wenkstern stated if they cannot complete this transaction, they will not be able to retire. To avoid that hardship, Wenkstern stated they are asking the City Council to take whatever action is necessary to allow the buyer to complete the purchase of the land. Pat Hiller stated as it relates to the other presentations tonight, when the 60-day extension was agreed to at the last meeting, it was his understanding that a fairly detailed plan would be put together by the citizens. Hiller noted it would require several million dollars to purchase the property, redevelop it to the alternate vision, and then there would also be ongoing costs to run whatever it is in the future. Hiller commented he sees no evidence that the money raised is anywhere near that amount. While it appears that a lot of the work has been done to convince the City Council to just say no, that creates financial problems for the Wenksterns and for Source Land. Hiller stated he has seen the financial information for the golf course and noted that Grant has offered to provide the financial information if requested.