10-29-91 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 29, 1991 Hanson asked if the 55 cents per square foot took into account the legal costs the City incurred in acquiring the Pioneer Park property. The City Administrator replied that it did not. The 55 cents was raw land costs. If there were buildings on a particular property, there were additional costs to the City for acquiring those buildings. Blesener reported that the $2 per square foot cost was chosen since this was a price that was quoted as fair at one point when the City was discussing the possibility of Costa Lane extending north to Allen. The City Administrator pointed out that the $2 figure was a negotiated one and is not based on an appraisal. Blesener pointed out that the City used TIF to write down land acquisition costs in the Country Drive area to $1.35 per square foot. The City Administrator reported that actual acquisition costs were in the $3 per square foot range, however, that figure included more than raw land. Blesener asked if the $2 per square foot price was fair for industrial property. Collova suggested that the price should be verified, and Council discussed the possibility of having an appraisal done. It was estimated that a certified appraisal would cost $500. Scalze pointed out that the City had appraisals for the Country Drive land, and the $3 per square foot figure was not out-of-line. The Country Drive property may have been better property, therefore, Scalze did not feel the $2 per square foot figure for the DeSoto easement was excessive. The City Administrator again indicated that the $2 figure was a negotiated figure, and pointed out that the Country Drive property was written down to $1.35 per square foot. Blesener felt the $1.35 figure was too low. Scalze pointed out that Mr. Costa does not feel he should pay anything for the easement. Scalze suggested that the City would be settinq a precedent by negotiating property values at an assessment hearing. Page 6