09-22-99 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEMBER 22, 1999 COUNTRY DRIVE AND AUTHORIZIN(i THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY The foregoing resolution was duly seconded by Morelan. Ayes (5) LaValle, Morelan, Pedersen, Scalze, Fahey. Nays (0). Resolution declared adopted. The City Administrator reported that he has been discussing with Mr. Schreier the City's purchase of his two sites on South Owasso Blvd. Precision Tree is interested in the triangular piece of property to relocate their business. This site is heavily wooded. Groholski indicated that they would be agreeable to complying with the building materials conditions of the I-P Zoning District in redeveloping on this site. However, may have an issue with outdoor storage given that the area designated as such may exceed the size of the building they would propose to construct. The City Administrator pointed out that the City has contributed to the hardships that Precision Tree is experiencing in finding another location. He repoirted that he has drafted purchase agreements for both of Mr. Scheier's sites. For the triangular site, he is proposing that the purchase price be based on an appraisal of the property and included a price range of $1.50 to $2.50 per square foot for the property. Mr. Schreier's representative has indicated that the low end of that range should be increased to $2.00 per square foot. The City Administrator reported that the site consists of 2.62 acres, however, there is a lot of unusable area given the shape of the property that will likely impact the value of the site. Precision Tree is a~reeable to purchasing the site based on the appraised value as long as the appraisal is in the $1.50 to $2.50 per square foot range on the piece located in the northwest corner of Owasso and Spruce. The range would be $2.00 to $2.50. The City Administrator estimated the cost of an appraisal at $2,000 and indicated that he did not recommend proceeding with the appraisal unless the property owner was willing to sell. The Administrator also indicated that there are tax advantages to the City's involvement in the purchase given that the City can offer the seller a Section 1033 letter that would result in preferential treatment on capital gains. It was the consensus of the Council that the City should proceed with the appraisal if Mr. Schreier agrees to payin~ the cost ofthe appraisal in the event he decides not to proceed with the sale. 19