Blaine agrees to buy 10-acre site, use strategic-priorities funds to make it development ready and earmarks it as preferred fire station site

Blaine City Council voted 6-1 on April 20 to assign a developer's purchase agreement to the city for a roughly 10-acre pad at the southwest corner of 120th Avenue and Lexington Avenue, approve up to $1.275 million from the city's strategic priorities fund toward infrastructure work and accept a $300,000 assignment fee to the developer. Council also adopted a reimbursement resolution so the city could issue bonds later and repay the strategic priorities fund if the property is used for a fire station.

The council's action covers three linked items: an assignment agreement to acquire Out Lot A for $1,100,000, a cost-share escrow and agreement to fund up to $1,275,000 toward an estimated $5.4 million site infrastructure buildout, and a reimbursement declaration tied to potential future bond financing. Director of Community Development Andrew Thorvig told the council the $5.4 million estimate covers roads, utilities, stormwater work and a county-required traffic signal; the city's contribution is an up-to amount that would be drawn from an escrow as bills are certified.

Why it matters: the 37-acre property has been the subject of workshops and a rejected land-use amendment for high-density housing. Council members and staff said the city's purchase would produce shovel-ready commercial pads and also preserve an option to place a future fire station on the larger pad. Director Thorvig said the council had directed staff in December to pursue an assignment option that would let the city acquire the west pad and reduce a private developer's exposure to extraordinary infrastructure costs.

Councilmember Masolia successfully amended the purchase motion to state that the acquisition "includes the City Council's preferred site for a potential future fire station for SBM Fire Department." City Attorney Lunan explained the wording signals council preference but does not legally bind future councils or SBM to the site. Director Thorvig added that the larger north pad (Lot 6) is approximately four acres and could meet SBM's site needs while leaving a smaller pad available for commercial sale.

Discussion centered on the optics and precedent of using the strategic priorities fund'money the city received when a regional hospital district dissolved in 2019'to help make private land development feasible. Several residents who spoke during open forum objected. Jonathan Edmondson, a longtime resident, said he was "concerned" about Resolution 25-54 and questioned why a commercial development would be subsidized by taxpayers. Dale Sprouse and Elmer Stevenson also objected to taxpayer support for private development and said the city should not be a land speculator.

Councilmembers were split on whether the $300,000 assignment fee was appropriate. Thorvig said the developer initially sought $400,000; council and staff reviewed the developer's documented expenses going back to 2022 and found approximately $218,000 in out-of-pocket costs, but the council negotiated and offered $300,000, which Thorvig said was accepted. Councilmember Larson objected, calling the payment "a payout so he can retire" after playing a short recording from an earlier workshop in which the developer discussed retirement; other council members said acquiring negotiated development rights at the stated price avoided protracted and potentially costlier negotiations in the open market.

Votes at a glance: the assignment agreement (item 10.2) passed on a roll call: Fleming Aye, Ford Aye, Larson No, Masolia Aye, Newland Yes, Robertson Aye, Mayor Sanders Aye (6-1). The cost-share agreement (item 10.3) and the reimbursement resolution (item 10.4) were approved by voice vote; council recorded "motion prevails" on both items.

What happens next: staff told council the assignment agreement expires April 30 but that the seller's broker indicated willingness to extend a closing if council approved the purchase that evening; the preliminary plat that would create the legal 10-acre lot is scheduled for the planning commission the next day. If the city completes the purchase and pays for the infrastructure, staff said proceeds from future land sales on the pads would reimburse the strategic priorities fund. Thorvig said the $5.4 million infrastructure figure is conservative and if bids come in lower the city's obligation would be reduced.

The council's action requires five votes because the strategic priorities fund policy calls for heightened approval when using the fund. Councilmembers and staff said further work remains: final plat approval, engineering bids, county permitting for access on two county roads, wetland mitigation and coordination with SBM and neighboring cities if the site progresses to a fire station.

Ending: With the motions approved the council adjourned and moved into EDA business. Thorvig and city finance staff said they will return with contract documents, escrow details and the planning commission outcome as the project proceeds.