08-23-2006 Council Agenda - Laserfiche WebLink

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ice+ aV ' ., 99yj1 4carwaa 515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci,little- canada.mn.us MEMORANDUM MAYOR Bill Blesener COUNCIL Jim LaValle Rick Montour Barbara Allan John Reis ADMINISTRATOR Joel R Hanson TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: August 18, 2006 RE: Appraisals for Viking Drive Properties in attempting to obtain purchase agreements for 85 and 91 Viking Drive West properties, the realtor asked us to complete the appraisal process. (I made a verbal offer for the properties based upon 10% over Ramsey County's estimated market value for pay 2007.) I believe the County's EMV is a reasonable given the rapid escalation in residential property values the past few years. Furthermore, if valued as commercial property, I believe the offer is more than fair in that I am not aware of comparable sale at that cost per square foot. I have talked with Steve DeCaster, die City's appraiser, as to the estimated cost of the appraisal for the two properties. He stated he would expect the cost to run between $6,000 and $8,000 for the two properties. I have also left a message with the realtor involved in these properties. I have told him that I am concerned about spending that kind of money on appraisals without some assurance that we can strike a deal based on the appraisal. Further, if the City had to proceed to eminent domain (I made it clear that no such decision has been made), then we could not give him the details of the appraisal, but only the determination of value. Another concern I have is we need to get a stronger commitment from Oasis Market and McDonald's before [ would recommend we spend the money on the appraisals. It will do us no good to gain control over the residential pieces without the commercial properties. [ will talk further with the realtor and the other property owners prior to Wednesday's meeting to get a better handle on the situation prior to making my recommendation.