Controversy over riverfront land continues
Request to buy land
is first for riverfront area
By Lynn Zerschling Journal staff writer | Posted: Wednesday, November 28, 2007
SIOUX CITY -- For the second time in two months, city lawmakers are wrestling with a request to turn publicly owned land over to a private entity.
At issue this time is a request from Larry and Roger Miller of Midwest Franchise -- Iowa L.L.C., who have asked the City Council to sell their company 25 acres of land they currently lease for the Mlr Tym Marina, Bev's on the River and Hilton hotel, which is under construction. On Monday, the council voted 3-2 to wait a week before voting on whether to set a public hearing on the matter.
In October, the council unanimously authorized the city manager to begin negotiations to lease land in Cook Park to Girls Inc. so the agency can build there. That vote followed vigorous debate on whether the city should allow a portion of the park to be leased for private use.
Along the Missouri riverfront, in addition to leasing land to the Millers for the marina development, the city leases land to Argosy, the gambling casino berthed at the riverbank, along with large parking lots. The city also leases land to Missouri River Historical Development Inc., which has built the Lewis & Clark Interpretive Center by the river.
The Miller brothers' request to buy the land outright is a first.
"I am not aware of the city selling land that it controls along the riverfront," Patty Heagel, the city's community development director, said Tuesday. "The redevelopment of the marina and needed commercial development to support the marina has been part of the Riverfront Master Plan. It never addressed ownership."
At Monday's council meeting, Heagel proposed the city sell the land, valued at $250,000, for $1. Under the development agreement, the Millers have a 60-year lease on the land, with a 40-year option. They pay the city $18,000 a year. The development agreement calls for an $11.5 million assessed value on their improvements.
"The land sale includes all the land that they have developed -- the marina, pier, restaurant, hotel and parking lots and green spaces that they will continue to maintain," Heagel explained. "All public parking lots and trails would remain public."
The city has invested $3.1 million in the area for roads, storm sewers, additional trails, public restrooms and improvements to Larsen Park Road. No city funds went into the buildings.
"Any sale would include all the same restrictions and oversight the 60-year lease does to protect the use for the long run," Heagel said.
She told the council the Millers want to own the land instead of continuing the long-term lease for two reasons -- to obtain more favorable financing and to create a real estate trust.
"Financing has proven more costly to construct on leased land, since financial institutions can only tie their investment to the improvements themselves," Heagel said. "Additionally, at the end of 60 years, if they wish to no longer to lease, the city is required to purchase their improvements at fair market value."
Roger Miller is president of Concrete Speciality in South Sioux City, and Larry Miller owns the USA Steak Buffets in Omaha. Roger Miller was in meetings Tuesday and could not be reached for comment. Larry Miller was out of state on vacation, an associate said.
Mayor-elect Mike Hobart and Councilman-elect Aaron Rochester said Tuesday they need a lot more information before they could vote to sell that property. Whether the pair will have a chance to vote on the issue after the first of the year remains to be seen.
On Tuesday, Councilmen Jim Rixner and Brent Hoffman recalled that councilmembers were invited to meet individually with the Miller brothers and city staffers three to four months ago.
"Each of the council members was given an opportunity with staff to walk through the property and look it over," Hoffman said. "They drove me around in a golf cart."
Issues discussed included relocating a fence and part of the trail, the proposed water fountain feature, an issue with building the convenience store because of a nearby city well and whether the city would consider selling the property.
Rixner said: "They drove me around in a golf cart and showed me everything. I said, 'Why would I sell you riverfront land?' It doesn't make any sense to me. ... I don't begrudge Mr. Miller or anybody asking us to do something. I think they've done good work down there."
Councilman Jason Geary said, "I chose not to participate" in meeting with the Millers. "I don't need more time. My mind is made up. Let the proposal die."
Hoffman and Mayor Craig Berenstein said they have a number of questions they wish to ask the Millers. Councilman Dave Ferris said he thinks the city will not lose anything by selling the land.
Rochester added: "It is riverfront property. We haven't sold it before, so what does that mean for the future?"
Lynn Zerschling may be reached at (712) 293-4202 or lynnzerschling@lee.net
At issue this time is a request from Larry and Roger Miller of Midwest Franchise -- Iowa L.L.C., who have asked the City Council to sell their company 25 acres of land they currently lease for the Mlr Tym Marina, Bev's on the River and Hilton hotel, which is under construction. On Monday, the council voted 3-2 to wait a week before voting on whether to set a public hearing on the matter.
In October, the council unanimously authorized the city manager to begin negotiations to lease land in Cook Park to Girls Inc. so the agency can build there. That vote followed vigorous debate on whether the city should allow a portion of the park to be leased for private use.
Along the Missouri riverfront, in addition to leasing land to the Millers for the marina development, the city leases land to Argosy, the gambling casino berthed at the riverbank, along with large parking lots. The city also leases land to Missouri River Historical Development Inc., which has built the Lewis & Clark Interpretive Center by the river.
The Miller brothers' request to buy the land outright is a first.
"I am not aware of the city selling land that it controls along the riverfront," Patty Heagel, the city's community development director, said Tuesday. "The redevelopment of the marina and needed commercial development to support the marina has been part of the Riverfront Master Plan. It never addressed ownership."
At Monday's council meeting, Heagel proposed the city sell the land, valued at $250,000, for $1. Under the development agreement, the Millers have a 60-year lease on the land, with a 40-year option. They pay the city $18,000 a year. The development agreement calls for an $11.5 million assessed value on their improvements.
"The land sale includes all the land that they have developed -- the marina, pier, restaurant, hotel and parking lots and green spaces that they will continue to maintain," Heagel explained. "All public parking lots and trails would remain public."
The city has invested $3.1 million in the area for roads, storm sewers, additional trails, public restrooms and improvements to Larsen Park Road. No city funds went into the buildings.
"Any sale would include all the same restrictions and oversight the 60-year lease does to protect the use for the long run," Heagel said.
She told the council the Millers want to own the land instead of continuing the long-term lease for two reasons -- to obtain more favorable financing and to create a real estate trust.
"Financing has proven more costly to construct on leased land, since financial institutions can only tie their investment to the improvements themselves," Heagel said. "Additionally, at the end of 60 years, if they wish to no longer to lease, the city is required to purchase their improvements at fair market value."
Roger Miller is president of Concrete Speciality in South Sioux City, and Larry Miller owns the USA Steak Buffets in Omaha. Roger Miller was in meetings Tuesday and could not be reached for comment. Larry Miller was out of state on vacation, an associate said.
Mayor-elect Mike Hobart and Councilman-elect Aaron Rochester said Tuesday they need a lot more information before they could vote to sell that property. Whether the pair will have a chance to vote on the issue after the first of the year remains to be seen.
On Tuesday, Councilmen Jim Rixner and Brent Hoffman recalled that councilmembers were invited to meet individually with the Miller brothers and city staffers three to four months ago.
"Each of the council members was given an opportunity with staff to walk through the property and look it over," Hoffman said. "They drove me around in a golf cart."
Issues discussed included relocating a fence and part of the trail, the proposed water fountain feature, an issue with building the convenience store because of a nearby city well and whether the city would consider selling the property.
Rixner said: "They drove me around in a golf cart and showed me everything. I said, 'Why would I sell you riverfront land?' It doesn't make any sense to me. ... I don't begrudge Mr. Miller or anybody asking us to do something. I think they've done good work down there."
Councilman Jason Geary said, "I chose not to participate" in meeting with the Millers. "I don't need more time. My mind is made up. Let the proposal die."
Hoffman and Mayor Craig Berenstein said they have a number of questions they wish to ask the Millers. Councilman Dave Ferris said he thinks the city will not lose anything by selling the land.
Rochester added: "It is riverfront property. We haven't sold it before, so what does that mean for the future?"
Lynn Zerschling may be reached at (712) 293-4202 or lynnzerschling@lee.net
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Wise up, Sioux City wrote on Nov 30, 2007 12:02 AM:
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