By Lori Carlson, Editor

City of Prior Lake officials have negotiated an agreement for purchase of the Minnesota Nails property at 16328 Main Ave. and will not proceed with eminent domain action.

The council approved the purchase agreement Monday.

"After numerous meetings over the last four months, we have negotiated an agreement with the property owners," said Paul Snook, economic development director.

The city and owners of Minnesota Nails agreed on a $135,000 purchase price, due on or before closing on June 30. Scott County tax records indicate the value of the land and building is $115,400. An appraisal updated in February puts the market value at $112,000.

According to Snook's report, city staff believes the $135,000 is a reasonable price because the owner made several improvements to the property and because the city could avoid the potentially high cost of eminent domain proceedings.

In April, City Council members voted to authorize quick-take eminent domain proceedings for the vacant building. City staff had said they were unable to reach an agreement with the property owner over the last few years. The city plans to demolish the site, along with the adjoining former Joe's Pizza space, to make way for parking for downtown businesses.