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2::iii;::::::::ii: :.:i:;:; y iii ;:i;:i;:i:YYYY:.' 'iR:iii`;:i i! Meeting Date: 10/27/93 Agenda Item: P 3 CITY OF FALCON HEIGHTS REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Authorization for the city administrator to offer the property owner of 2061 West Larpenteur Avenue $114,000 for the acquisition of this property in accordance with local and CDBG acquisition requirements. SUBMITTED BY: Susan Hoyt, City Administrator EXPLANATION /SUMMARY: In 1993 the city received a $110,000 Community Development Block Grant for the acquisition and demoliton of 2061 West Larpenteur Avenue and the relocation of the two tenants, who currently reside there. When granted by Ramsey County, the county and city acknowledged that the grant would not cover the entire cost of the project whose estimated cost is $145,000. The grant amount will cover the relocation of the two residents and a major portion of the acquisition costs. The city will be responsible for providing the additional funding for acquisition (not covered by the grant) and demolition. The funding may come from some improvement funds set aside, but not used, as part of a TIF economic development project. Since relocation costs are not yet determined, a specific figure cannot be assigned to the improvement fund for the acquisition and demolition costs. A total of $35,000 is anticipated. At this time the city received an appraisal by Dahlen and Dwyer stating that the property at 2061 West Larpenteur is valued at $114,000. A review appraisal done by Lyle H. Nagell Company confirms this figure. Therefore, in order to proceed with this project, the administrator would like authorization to offer Dr. David Olson, the property owner, the amount of $114,000 for the acquisition of the building and site of 26,814 square feet. The site is zoned commercial and the valuation is based upon the analysis that the single family use is not the "highest and best use" and that the commercial use, although limited, would support a higher value than other uses that might be permitted. Dr. Olson has the right to request his own appraisal of the property. ATTACHMENTS: A Summary statement from Dahlen and Dwyer, Inc. appraisers B Summary statement from Lyell H. Nagell, Inc. appraisers ACTION REQUESTED: Authorize the administrator to offer Dr. David Olson $114,000 for the acquisition of the property at 2061 West Larpenteur Avenue in accordance with local and CDBG acquisition requirements. The funding will come from the 1993 CDBG grant to the city and th TIF construction funds.