02-23-2000 Council Agenda - Laserfiche WebLink

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MAYOR Michael 1. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson Email: cityhall @ci.little - canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: February 18, 2000 RE: Amendment to Exclusive Option Agreement for DeLonais Property Attached is a proposed Amendment to Exclusive Option Agreement for the Eugene M. DeLonais property at 2874 Rice Street. It is not yet in final form. The remaining issues relate to: ♦ Kathy DeLonais -Adams ability to lease the property until May 8th to allow for removal of personal property. ♦ A credit for sale proceeds if the house is not demolished. This issue arose because the appraisal included a deduct of $25,000 for demolition of the structures. I have informed the Trust's attorney's that we do not waste valuable property and would see if the houses could be sold (or given away) to a mover. The Trust does not want us to be enriched by this process. I pointed out the time and inconvenience of handling this type of transaction. I then suggested they could do it and keep the proceeds. (This is consistent with how we handled the Rice purchase on Country Drive.) That option is not likely to be accepted. I also proposed that any proceeds generated from the sale of the houses would be split 50/50 with the Trust. I have not had a response to that option. ♦ Less business days to notify Trust of assignment. Five days puts us beyond the 29th. I have informed them it is very likely the City Council will approve assignment, but that will not occur until the 23rd. That only leaves us three business days until the 29th. These matters will be resolved by Wednesday's meeting at which time a final draft will be available for your approval. The City Attorney's office is ok with language shown to date. Cc: David Orenstein Page 109