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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: May 7, 1999 <br />RE: Country Drive Redevelopment <br />South Site: <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 am continuing discussions with Mr. Gagne regarding the sale of his property. I am hopeful we will be <br />able to work something out, but we remain apart in price. Mr. Gagne has given me a copy of his most <br />recent appraisal and I will be presenting him with another concept to consider. I have also met with Mr. <br />and Mrs. Rice regarding the sale of their property. I will not pursue other properties until some resolution <br />is reached with Mr. Gagne. <br />North Site: <br />Attached is the executed purchase agreement with Ed and Dorothy Nadeau for their property on Country <br />Drive. The purchase amount of $85,200 was arrived at by taking the appraised value of $82,000 from <br />November of 1996 and adjusting it forward by the Consumer Price Index. One unique provision in their <br />purchase agreement relates to the portion of the Country Drive right -of -way that was vacated and added <br />to their property (past City involvement). We have limited their exposure for abstracting and title <br />correction problems associated with this to $500 in the event any problems arise due to that portion of the <br />property. <br />The purchase agreement with June Fasciana is based on the recent appraisal conducted by Bill Peterson. <br />The purchase price is $125,000. We anticipate closing in the next few weeks with Mrs. Fasciana vacating <br />residence by the end of June. <br />The purchase of these properties will facilitate the development of a 30,000 square foot office building to <br />be constructed by Dick Biagini. CI Title will occupy 20,000 square feet of this structure. We are in the <br />process of finalizing the development agreement with Mr. Biagini for this project. To ensure that the City <br />is able to move forward with the purchase of the properties to help expedite construction of the new <br />facility, CI Title will be providing us with a letter of credit in the amount of $250,000 to guarantee the <br />purchase of those properties should the development not move forward. (See letter attached from Mr. Pat <br />Daulton of CI Title.) <br />Page 10 <br />