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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: September 3, 1999 <br />RE: Country Drive Update <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />I recently met with Mr. Gagne about the potential sale of his property on Country Drive. As you <br />know, it is the largest parcel on the remaining south side redevelopment area, and without it, the <br />acquisition of other parcels is of questionable value. Mr. Gagne has informed me that his <br />required sales price is about $50,000 higher than our offer. Our offer was based upon the <br />appraised price of his home (his appraiser) and $2.56 per square foot for the vacant land (same <br />price we paid Ed Nadeau). <br />I informed him that difference is too great to overcome. This comment was based on the John <br />Allen proposal of a 55,600 square foot office /warehouse building. That project doesn't stand on <br />its own from a TIF standpoint at my offer. We agreed that it is not the time for the City to buy his <br />property. <br />Mr. Phil Franklin has expressed interest in selling us his property (2825 Country Drive). Our offer <br />is based on the appraisal we did in December of 1997 and adjusted based on the Nadeau land <br />sale price. (He has reported being offered $130,000+ for it as a residential use. I have informed <br />him zoning regulations will not allow the reestablishment of a residential use at this location.) He <br />would like to know if we are interested in buying it at this time. <br />While on one hand, it would make sense to purchase property from a willing seller, that parcel by <br />itself won't do us much good until the Gagne piece is available. We also need to keep in mind <br />the fact the TIF District is almost half gone from a collection potential standpoint and our ability to <br />recover costs is diminished as each year passes. (We do have some surplus dollars available <br />that could be used to offset this cost.) Mr. Quirin is also interested in selling at this time. <br />The Council's direction as to how you would like to proceed would be appreciated. <br />CC: Don Gagne <br />Phil Franklin <br />Charles Rice <br />Bill Quirin <br />Page 80 <br />