03-26-97 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL MARCH 2G, 1997 Morelan pointed out that in situations where the asking price has been below the appraised value of a property, the City has averaged the two prices to determine sale price. Morelan stated that while everyone would like to believe appraisals are scientific, it may be that some appraisals are too high and some asking prices have been too low. This is the reasoning behind the City's averaging of the two prices. Ivlorelan felt this has been an equitable solution. Morelan stated that he would like to see the Hagen property acquired. I-lowever, noted that as it would be acquired for open space, it is not critical to the City's redevelopment efforts at this point. Morelan felt the $111,000 purchase price recommended by the City Administrator made sense. Hagen questioned whether or not this policy of averaging the two prices would affect asking prices other property owners may have. Morelan suggested that perhaps a solution would be for Mr. Hagen to have his property appraised. Once the appraisal is complete, it could be submitted to the Council for additional consideration. The City Administrator felt this is a reasonable sug~;estion, however, noted that the City is ready to close on a property next week. The same situation exists wherein the asking price was lower than the appraised value. The Administrator suggested tliat from a consistency standpoint, the City should offer the same opportunity to this property owner. LaValle suggested that he would rather see the City's dollars spent on the redevelopment of the Rice Street/Little Canada Road intersection. LaValle felt there was no urgency in the City's pwchasin~ the Round Lake propeities at this time. Hagen indicated the City would run the risk that the property would appreciate. LaValle pointed out tliat the property could depreciate. Hagen stated that he did not see his property depreciating. Hagen pointed out that the property has been hit as hard as it could be on the Little Canada Road side, and Round Lake will always be located on the south side. Hagen stated that they would very much like to sell their property to the City for open space. More(an sug~ested that if L-Ia~en is not comfortable with the $111,000 that is being offered for his propercy, he would have to make that decision. Morelan stated that he supported the recommendation of the City Administrator to offer to purchase the Hagen property for $1 I 1,000. Scalze and LaValle agreed with Morelln.