DELANO, MN – The former Quik Shop gas station at 125 Woodland Rd. has sat empty since May 2014.
The Delano Economic Development Authority is aiming to change that.
A purchase agreement was signed Wednesday.
The agreement calls for the EDA to purchase the site from Red Rooster Properties, Inc. for $325,000, the assessed value of the property.
Red Rooster Properties had initially purchased the property for redevelopment for the same price Sept. 1, 2016.
Previously, the property was purchased for $2 million in 2008.
The sale is expected to close in November, following further environmental testing and site inspections.
“It is an excellent commercial site located near the Highway 12 corridor and, unfortunately, environmental conditions with the site have prevented the private market from proceeding with a reuse,” City Administrator Phil Kern said in a press release.
Using proceeds from other development projects, the EDA will remove the underground storage tanks, gas pumps, canopy, and substandard buildings from the site prior to redevelopment, according to Kern.
The goal is to get the property back into private ownership.
“The EDA will consider proposals for commercial and retail redevelopment uses, and intends to eventually resell the site to a private user willing to invest in a viable commercial/retail use of the property,” Kern said. “More information will be coming soon regarding the process for individuals to express interest in the site for redevelopment.”
Kern indicated that there has been interest in the property once it is remediated.