10-08-2014 Council Agenda - Laserfiche WebLink

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MAYOR 13111 Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 551174600 (651) 766-4029 / FAX: (651) 766-4048 ADMINISTRATOR www.ci.Iittle-canada.mn.us Joel R. Hanson MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 3, 2014 RE: Revised Offer to Purchase 3046 Labore Road Attached is a purchase offer for our property at 3046 Labore Road submitted by Derek Owens and Kathleen Mahan (this is the couple who made the last offer to us). Their revised offer of $100,000 is highlighted on the attached e-mail from Bob Pedersen. You will note on the addendum to the purchase agreement (last page of this agenda material) that provided their basis for the offer of $100,000 versus our asking price of $120,000. A few comments for your consideration regarding these items: • Retaining Walls — Retaining walls may be needed for the development of the property, depending on the house style and placement, but they would not typically be a deduct from the market value of the property. (Note: Ramsey County has a land value of $153,000 on this property.) • Sewage Ejector Pump — Again, this may be necessary depending on house placement and basement depth. However, the previous house on the property did not require one. • Soil Borings/Buildability Letter — Not typically paid by the Seller. • Fill Needed — No calculations of needed fill were provided or pricing of the material was provided. If the house were built with a 30 setback (minimum per code), excess material would be generated from the excavation of the foundation. Again, this may be a questionable deduct from our asking price. • Certificate of survey — Not typically paid by Seller. Another consideration is there are no property taxes due in 2014 due to our exempt status. Therefore, the buyer will have no pro -rations of this amount. In fact, we are checking to see if the exempt status continues into next year, thereby generating additional savings. Staff would again recommend a closed session for the Council to review the offer and determine the City's position. cc: Derek Owens Bob Pedersen 1