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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: June 18, 1999 <br />RE: Precision Tree Property <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 have been in conversations with Chris and Mac Groholski regarding the potential sale of their <br />property to the City to facilitate the Biagini development. I have informed them of the <br />following: <br />• We need title to their property by November 1s` <br />♦ Eminent domain would be used if we cannot reach a voluntary sale. <br />• If a voluntary sale occurs, I indicated we would be willing to increase the offer by <br />$15,000 thereby offsetting the costs we avoid by not using eminent domain. <br />♦ If eminent domain is used, they would be eligible for relocation benefits. I estimate them <br />at $20,000. I indicated we would be willing to pay them this amount under a voluntary <br />sale. I informed them that we need to obtain an appraisal of their property as soon as <br />possible so that both parties are aware of the costs involved in this transaction. They <br />have concurred with this step. <br />♦ I have given them some potential relocation sites for their business within our City. They <br />are presently exploring them. <br />• They are aware my discussions do not constitute an offer to purchase. They understand <br />that decision rests with the Mayor and Council. <br />Based on this information, it is my recommendation that we authorize an appraisal of the <br />Precision Tree property to serve as the basis of negotiations for acquisition. <br />JRH:kpp <br />PAGE 249 <br />