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515 Little Canada Road, Little Canada. MN 55117 -1.600 <br />(651) 766-4029 / FAX: (651) 766 -4048 <br />WWw. ci. little- canada.run. us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />Members of the Planning Commission <br />FROM: Joel Hanson, City Administrator <br />DATE: February 18, 2005 <br />RE: Sale of County Road B Land <br />MAYOR <br />Bill F3lescner <br />COUNCIL <br />Jim LaV%alle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />ADMINISTRATOR <br />Joel R. 1[ansou <br />Gordie Howe of Masterpiece Homes, Inc. has informed me that he would like to cancel the <br />purchase agreement for our land on County Road B. (A copy of the purchase agreement is <br />attached.) His reason for doing so is the cost of the site ($385.000) plus the development <br />costs associated with tree removal, substantial grading, utility connections, and development <br />of a long driveway make it unfeasible for him to proceed with a project. I did discuss what <br />type of reduction or other assistance may make it feasible (we could have shared in the <br />driveway costs due to our use for the lift station adjacent to this site). He said it would take <br />about $150,000 to make it work for him. I informed him that wouldn't work for us. <br />You will note that we were to have closed last December. That is the point in time Mr. Howe <br />became concerned about development costs. He asked for additional time to refine his <br />estimates to make sure the deal would work for him. This past Tuesday. he informed me that <br />he couldn't make the numbers work. <br />From a legal standpoint, we may have some abilities to pursue performance of this agreement <br />based on its terms and conditions. (The City Attorney can comment on that at Wednesday's <br />meeting.) However, T believe canceling the agreement and putting the property back on the <br />market will better serve our long -term interests. <br />If you agree that we should remarket the property. I would recommend we have a sign <br />prepared and placed on the site that will be visible from Highway 36. City staff can once <br />attempt to sell the property to avoid the payment of real estate commissions. If we determine <br />this is not generating the necessary activity. we could list the property. <br />