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MINUTES <br />CITY COUNCIL <br />FEBRUARY 11, 2015 <br />acquires this property would have to invest a lot of money into the house to <br />bring it up to Code. <br />McGraw asked what the asking price for the property started out at. The <br />Administrator indicated that it was close to $130,000. He noted that the County <br />has the estimated market value for this property high. <br />Torkelson asked what this property would do for the City. The Administrator <br />noted that in addition to extending the park, the City's acquisition of the <br />property would eliminate an eyesore on Little Canada Road as well as a <br />driveway access. Keis pointed out that the property owner immediately east <br />would also like to sell his property to the City. The Administrator indicated that <br />the asking price for that property had been quite high. <br />Keis suggested that the City could take a wait and see approach, and if the <br />property is not sold within a year, make an offer at that time. McGraw stated <br />that he had no problem with that approach and pointed out that if the property is <br />sold, it will have to be brought up to code. <br />Montour asked the City Administrator about the likelihood of the owner <br />accepting an offer close to that of the appraisal fee. The Administrator indicated <br />that negotiations with the realtor have been difficult, but noted that she does <br />keep calling the City to pursue the matter. The Administrator noted that the <br />realtor has asked what the City paid for the other parcels along Round Lake, <br />which he informed her that the appraised value was paid. The Administrator <br />noted that one of the problems is that the County's estimated market value <br />(EMV) is overstated for this property. He noted that the EMV for the land value <br />is at $69,400, and that is closer to the true value of the property since the house <br />is in extremely poor condition. <br />Torkelson asked where the money would come from for the purchase of this <br />property. The City Administrator indicated that it would come from the Park <br />Land Dedication Fund which is funded primarily from park charges that are <br />collected at the time building permits are issued for a property. He reported that <br />the Fund has a significant fund balance. The Council also discussed other park <br />land acquisitions that may be contemplated in the future. <br />After additional discussion, he Council's consensus was that an offer should <br />made for the property with the City Administrator directed to make an offer in <br />the range of $70,000 to $75,000. It was noted that the appraised value is <br />$80,000, but the City would incur approximately $15,000 in demolition costs for <br />this property. <br />Keis introduced the following resolution and moved its adoption: <br />2 <br />