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MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson <br />Email: cityhall @ci.little - canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 4, 2000 <br />RE: DeLonais Property Acquisition Update <br />As you know, the City has an exclusive option to purchase with the estate of Eugene DeLonais regarding <br />the purchase of his property at 2874 Rice Street. Kathy DeLonais -Adams has expressed some concern <br />regarding the purchase price of the property as was determined by an independent appraisal ($350,000). I <br />have been discussing this matter with her attorney, Mr. David Orenstein. He has indicated his belief that <br />the City's agreement is clear and we would be in a position to force the sale if we desire. However, he <br />asked for some additional time so that they could review the appraisal results with another appraiser to <br />verify their accuracy. This process is currently underway. <br />I have informed Mr. Orenstein that we have some deadlines we need to make regarding the closing on <br />this property. I have stated to him that we need to close before the end of this month. I also made him <br />aware that the Council will be directing the City Attorney to take action to ensure specific performance <br />under this agreement to protect our interests. While we need to close before the end of February, there <br />may be some flexibility in leasing the property back to Ms. DeLonais -Adams to allow her continued use <br />of the property for a short period of time. <br />I am expecting to hear from Mr. Orenstein prior to Wednesday's meeting. If we do not have a closing <br />date established by then, the Council should direct the City Attorney to act accordingly. <br />JRH:kpp <br />cc: Kathy DeLonais -Adams <br />David Orenstein <br />P.S. Mr. Orenstein did get ahold of me on Friday. He indicated their appraiser (Dave Massopust) feels <br />the property should be valued significantly higher. (A conclusive finding has not been made — <br />estimates are around $6 per square foot or $500,000.) They will likely be at Wednesday's <br />meeting to discuss their position. I will continue to gather information in the meantime. <br />Page 54 <br />