09-09-1998 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 484 -2177 / FAX: (651) 484 -4538 IMEMORANDUM TO: Mayor Fahey and Members of the City Council FROM: Joel R. Hanson, City Administrator DATE: September 4, 1998 RE: 2600 Rice Street MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morel= Bob Pedersen ADMINISTRATOR Joel R. Hanson I have met with Jay Reiling and Charlie Drake, prospective owners of 2600 Rice Street, regarding their interest in selling the aforementioned property to the City. They have indicated that they would want $200,000 to sell the property at this time. This is based on their purchase Price (amount was not disclosed to me) as well as their time, effort, and costs expended to date. As you will recall, we offered $139,900 for this property which was its asking price as well as the amount of the previous sale which fell through this past summer. I also talked with Mr. Reiling and Mr. Drake about the possibility of assisting them with a more aggressive redevelopment program. They indicated their willingness to consider that option but it would be subject to having a major tenant to occupy a new building. At this point in time, I cannot recommend our purchase of the property at the price proposed given the lack of supporting documentation as well as the poor precedent it would set for other property acquisitions we are contemplating. My recommendation is also based on the fact we do not have an actual use for this property at this point in time. Should our needs change or become more definitive, we can always reconsider this matter. I would recommend that we work with the prospective owners to relocate tenants from the Rice Street /Little Canada Road area should that need arise. We should also work with them to assist in the possible acquisition of adjoining properties in order to assure the best land use for the area. cc: Jay Reiling Charlie Drake Page 58