Council Authorizes Lot Purchase as City Pitches in for American Legion

 In an area where government involvement in business is almost always seen as intrusion, St. Michael will take this one for the team.

The St. Michael City Council authorized the purchase of a parking lot located immediately south of St. Michael Liquor, after city staff made the request on behalf of the St. Michael American Legion.

The purchase of the small lot will raise about $100,000 toward the Legion’s purchase of TJ’s. The money from the sale will go directly to the owners of TJ’s, clearing the way for the building’s ownership change.

“It really makes sense in a lot of ways,” said City Engineer Steve Bot. “And it helps kind of seal the deal.”

St. Michael American Legion leaders Norm Freske (commander) and Ron Kohorst (finance director) had appeared in front of the city’s Economic Development Authority board only two weeks earlier, hats literally in-hand. They were about $300,000 short of closing the deal with TJ’s, and were about to be homeless, since the old Legion will be torn down this month to make way for the Walgreens parking lot.

Their last resort, they said, was to ask the EDA for some assistance, allowing the city to step in and buy the lot.

The city already owns a parking area to the west of the TJ’s building, but could sell that off if redevelopment came at the Corner Bar location, Bot said.

City Administrator Bob Derus said he liked the deal because it the lot in question also connects to land along the one-way pair, which is also prime for redevelopment.

Cash for the transaction will come out of the city’s capital improvement fund, which has about a $400,000 balance, Derus said.

The EDA will be asked to pay those funds back to the city, Derus added.

The Legion will move into the TJ’s spot as soon as possible, Bot said, according to what he’s been told.

City Clerk Diana Berning said permits are being requested so the Legion can remodel bathrooms in TJ’s, which housed Russell’s for many years.

In another action item on the deal, the council closed the TIF District hearing for land located on the west end of the one-way pair, which would have housed a new Legion building. That deal fell through months ago when the Legion said costs for a brand new facility were too high in comparison to the possible TJ’s deal.

“I think it’s great to keep an establishment like the American Legion downtown, and to give some new life to that TJ’s spot,” said council member Cindy Weston. “I think having the Legion out on the west end would have been a tough spot for them. This keeps them right here.”