10-13-2004 Council Agenda - Laserfiche WebLink

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W) o 4 S' S C°aivada 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 8, 2004 RE: Purchase Agreement and Appraisal for Watershed /Noel Drive Property MAYOR Michael I. Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour Bill Blesener ADMINISTRATOR Joel R. I-lauson The Watershed District has expressed some concern regarding the potential transaction involving our Noel Drive property. Specifically, they would like greater assurance that if they comply with the provisions of the Letter of Understanding dated April 16, 2004 (copy attached), we will complete the transaction. To address their concerns, I proposed that we enter into a purchase agreement that includes the provisions of the Letter of Understanding as contingencies. Another concern is the purchase price they would pay for the property. We have discussed the need to obtain an appraisal to determine the fair market value. Our appraiser, Steve DeCaster has estimated a $2,500 fee for completing that appraisal. This fee will be funded by non - refundable earnest money as outlined in the purchase agreement. As a result, if the transaction falls through, we would still recover the appraisal costs. If the transaction proceeds, the earnest money will be applied to the purchase price and the appraisal fee would be recovered through the sale proceeds. Subject to any comments by the City Attorney and pending Watershed review, I would recommend the approval of the attached purchase agreement. I would also recommend we authorize Steve DeCaster to conduct an appraisal of the Noel Drive property as a cost not to exceed $2,500 upon execution of the purchase agreement by Ramsey/Washington Metro Watershed District. cc: Cliff Aichinger