05-13-1987 Additions II - Laserfiche WebLink

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MEMORANDUM northwest Pssoci2ted corsutt2nts, inc. CITY OF T0: Little Canada City Council and City Clerk FROM: Dan Wilson DATE: May 7, 1987 RE: Thunder Bay Second Addition - Wright Property FILE NO: 758.09 -86.15 f987 LITTLE CANADA Per your instructions, we have attempted to resolve the differences between Mr. Wright and Mr. Frattalone with respect to the sale of the Wright property. At the Council meeting of 4/22/87 Mr. Wright said he had asked $80,000 for his property. Mr. Frattalone said he would pay 15% over the market value. The Assessor's real estate tax value is $58,000. Applying Mr. Frattalone's 15 %, the selling price would be $66,700. I first spoke with Mr. Wright who said he would actually accept $70,000. At that point, I thought we were very close to resolving the matter. I called Mr. Frattalone, who said he meant 15% over what he thought was market value, more like $40,000. With over a $20,000 difference of opinion, we looked to the appraisal route. We retained Mr. Doug Andrews who is a FHA /VA appraiser. He came highly recommended from an area bank president who uses him. As it turned out, Mr. Andrews was fam- iliar with the area and was able to work on it right away. His price was $250.00. The completed appraisal estimated the market value of Mr. Wrights property at $64,000. The land contributes $25,000 with $39,000 for the structure. I notified both parties with the appraised value. Mr. Wright said very little. He did say he would look to see if he could replace his home for that amount. Mr. Frattalone was surprised at what he thought was a high value. The appraiser's value is consistent with the County Assessor's value. A $64,000 value reflects an 89% sales /market ratio for the Assessor's value. This is typical in many communities. Page 1 4820 minnetonka blvd., ste. 200, minneapolis, mn 55416 (612) 925 -9420