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i? V 29d/4 Ceanezek <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: December 13, 2002 <br />RE: Purchase Agreement for Former DeLonais Property <br />MAYOR <br />Michael 1. Fahey <br />COUNCILL, <br />Beverly Scalze <br />Jim LaValle <br />Matt Anderson <br />Rick Montour <br />ADMINISTRATOR <br />Joel R. Hanson <br />Please find attached a proposed purchase agreement for the former DeLonais property currently <br />owned by Market Place Development, LLC. This agreement will resolve the outstanding default <br />situation that currently exists. As you will recall, under our Development Agreement with Market <br />Place Development, LLC, they were to have completed construction of a building on the DeLonais <br />property by November of 2001. By not doing so, we had the right to take the property back for <br />$375,000. Given the developers' cooperation with the City on a number of projects (donation of <br />Garden Terrace land, donation of ponding area for Market Place Drive, and use of their property for <br />clean -up day) it seemed more expedient to see if we could arrive at a mutually satisfactory <br />arrangement to resolve the default condition. <br />Therefore, I am proposing we repurchase this property for a price of $410,000. Based on my <br />calculations, the developers had cash outlays associated with ownership (purchase price, demolition, <br />and real estate taxes) totaling approximately $406,000. As part of this transaction, they will also be <br />required to complete the dedication of right -of -way needed for Market Place Drive. <br />Subject to further comment by the developers and our City Attorney, I would recommend approval of <br />this purchase agreement in the form provided. <br />1 <br />