Posted: 7/24/02

Ruggles receives first payment for land

Cliff Buchan
News Editor

The city of Forest Lake and its Economic Development Authority have taken the first step in the process of buying the Ruggles property which is being used for parking and drive improvements south of E. Broadway Ave.

The city is acquiring the property through condemnation proceedings. Two weeks ago, David Hebert, city and EDA attorney, recommended land owners Howard and Ann Ruggles be paid the amount determined by the cityís appraisal even though the final amount is still to be determined by the court.

At the EDA meeting on Monday, Hebert said the first payment will be $150,000. The land in question is south and east of the Lake Area Bank building which is owned by the Forest Lake couple.

Hebert said the payment is a good faith response by the city because the couple has cooperated with the city which has the street and utility project under construction.

ìTheyíve cooperated with us allowing us access to the property to do the construction,î Hebert told the EDA.

Where the final acquisition cost ends up will be a decision for the court. Hebert said the $150,000 amount is ìquite a bit lessî than the amount determined by a Rugglesí appraisal.

The south end improvements are tied to the construction of The Plaza, a 22,000-square-foot office-retail building that is being constructed on the former Stadium Sports site. The Gaughan Properties project is slated to be finished late in the year.

City Engineer Paul Hornby told the EDA the utility project was back on schedule after overcoming some wet weather setbacks in June. He said construction of The Plaza should be timed adequately with the utility project, Hornby said.

Hornby also received authorization from the EDA to begin a north end drainage plan tied to downtown redevelopment. He estimated total cost of $100,000 for the work, including $45,000 for engineering fees.

The drainage plan will cover the entire north end development area from E. Broadway to NE 2nd Ave.

While there were no updates from the Lake Park restaurant developers on the north end, officials of FHV Development said they plan to move ahead with demolition from the former My Place north to the Van Wirt Building in early August.

That will set the stage for construction on the three-story commercial-housing project to begin in late August or early September.

Architect and project partner Mark Finnemann said the developers hope to have the project started and closed in before the onset of winter.

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