02-09-2000 Council Agenda - Laserfiche WebLink

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MAYOR Michael I. 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 4, 2000 RE: Country Drive Purchase Agreement Attached is a purchase agreement between Charles and Diane Rice (2805 Country Drive) and the City. The purchase price of $133,000 is based upon the appraisal obtained by Mr. and Mrs. Rice last May. Given the condition of their home, it appears consistent with other values we have paid in this area. The purchase agreement also contemplates that Mr. and Mrs. Rice would be able to retain the house and garage structures for movement to another location or for sale to a moving contractor. The City would then demolish the remaining foundations. The key issue with this purchase agreement is whether or not the City is interested in purchasing this parcel without knowing the future of the Gagne site. As you know, the Gagne site is necessary for any substantial redevelopment to occur in this area. (It is also likely we will be able to purchase the Franklin Drywall property and the Quirin property if the Council feels voluntary acquisitions make sense.) Financially, the tax increment district should be able to handle these purchases even without a redevelopment project. (There may be some short-term cash flow issues, but dollars would ultimately be recovered through district revenues.) The Council needs to decide upon a course of action for future acqusitions in this area. If you agree that acquistions at this time make sense, then I would recommend approval of the purchase agreement with Mr. and Mrs. Rice as presented. JRH:kpp cc: Charles & Diane Rice Phil Franklin Bill Quirin Don Gagne Page 28