01-12-2005 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 w�,uw.ci. little- canada. inn. us MEMORANDUM MAYOR Michael 1. Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour 13111 Blesener ADMINISTRATOR Joel 12. Hanson TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 7, 2005 RE: Approval of Purchase Agreement for the Sale of 594 County Road B2 Attached is the proposed purchase agreement and related attachments for the sale of 594 County Road B2 to James Morris at a price of $287,500. This is below the appraised price of 8290,000 and less than the estimated $293,200 out of pocket costs we have into this property. This does not include any staff time associated with this project. Furthermore, if we count the opportunity cost of our money, another $7,000 could be added to that total. You will note that we are selling this property on a contract for deed. We are collecting 15% down ($43,125) by cashier's check (already in hand). The remaining amount ($244,375) will be financed on a contract based on a 30 -year amortization schedule with interest at 5.25% per annum. Monthly payments of $1,349.45 will be due on the 15th of each month starting February 15, 2005. The contract is due in full after the 84 month (7 Years) We anticipate closing on this transaction by next Friday (January 14`I'). Mr. Morris has also indicated he may constnict a garage on the property and convert the existing garage to living space. He will need approval from us for improvements over $5,000 in cost. Furthermore, the contract is not assumable. We are completing a credit check on Mr. Morris. Based upon the information received to date, we believe this will be a positive report. Therefore, staff recommends approval of the purchase agreement as presented and that the Mayor and Administrator be authorized to execute it on behalf of the City. They should also be authorized to finalize the contract for deed pursuant to the terns of the purchase agreement. (We anticipate the City Attorney will have the Contract for Deed document completed before Wednesday's meeting.) In the meantime, should you have any comments or questions regarding this transaction, please let inc know.