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6?/ <br />§,7% an a. <br />515 Little Canada Road, Little Canada. MN 551171600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />WWW. ci.li ttl e- cinlada. mn. ns <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />PROM: Joel Hanson, City Administrator <br />DATE: March 5, 2004 <br />RE: Sale of County Road B Property <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Jim LaValle <br />P -latt Anderson <br />Rick Montour <br />Bill f3lesener <br />ADMINISTRATOR <br />Joel R Hanson <br />With our recent discussions about finding a better, future home for a new public works <br />building, it appears we no longer have a need for the property we purchased on County Road <br />B. This is about 2.10 acres in size. It has a long driveway accessing from County Road B, <br />just west of the railroad tracks. We purchased this property from Bruce Hubbard at the end of <br />February in 2002 for a cost of $226,000 or $2.48 per square foot. The site will have some <br />visibility from Highway 36. It will need some significant grading to offset the substantial <br />changes in elevation that currently exist. <br />Gordie Howe has expressed interest in this site to house Masterpiece Homes. He would <br />construct an 8,500 to 10,000 square foot building on the site. It would consist of office and <br />warehouse space on a with approximately 2/3's office and 1/3 warehouse. There would be no <br />outdoor storage. The property is zoned B -W and I believe Mr. Howe's use would comply. <br />(This statement is subject to a review of the plans by our City Planner.) <br />A recent sale in this area (Joe's Sporting Goods) was over $9.00 per square foot. However, I <br />do not believe this is a good comparable sale in that the purchaser was looking for a site in a <br />specific area. Therefore, a premium was paid. Also, that site has visibility to Highway 36 <br />and County Road B and required substantially less grading than our site. <br />It is my opinion we should sell this property for $320,000 ($3.50 per square foot) to Mr. <br />Howe. (He is in agreement with the proposed purchase price.) This transaction would <br />achieve the following objectives: <br />1. Generate a reasonable return to the City for our investment in the site. <br />2. Keep a local business in Little Canada <br />3. Result in a quality development for the site (I'm basing this on Mr. Howe's track <br />record.) <br />4. Put the property back on the tax rolls. <br />