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ce 1 994414 ce <br />515 Little Canada Roacl, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little-eanada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: September 23, 2005 <br />RE: Sale of County Road B Land <br />MVIAYOR <br />Bill Blesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />ADMINISTRATOR <br />Joel R. Hanson <br />Reg Plowman of RJ Marco has submitted the attached purchase agreement for your <br />consideration. As you know, we had the site appraised in 2004 that achieved a value of <br />$385,000. The offer is for $300,000 and is based on his proforma rent calculations for a <br />20,500 square foot building that is about 30% office and 70% warehouse that would rent for <br />$7 per square foot. (see building sketch attached) <br />As you will recall, we had a purchase agreement for the appraised price with Gordie Howe <br />that he cancelled when he couldn't "make the numbers work" due to the high site <br />development costs coupled with the land price. Mr. Howe said it would take a reduction of <br />$150,000 to make it work for him. <br />I'm presenting this offer for your review and comment. Even if you find it acceptable, there a <br />couple of other issues dealing with storm water treatment and access to our lift station that <br />would still have to be resolved. We have not marketed the property as of yet due to the <br />interest expressed by Mr. Plowman. <br />Staff would like direction as to how to proceed. <br />