02/22/1995 Park Board Packet - Laserfiche WebLink

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Purchasing Options Athletic Complex Total acres: 82.50 Sewer District 5 Background Appraisal Completed January 11, 1995 Two approaches were taken: Market Data Approach Subdivision Approach Market Data looked at a survey of sales of land in Lino Lakes. Adjustments were made for factors such as location, availability of utilities, topography, and time of sales. Subdivision Development attempts to look at the subject property from the perspective of a potential developer on the site. The value is indicated by estimating the total revenue that the site will generate upon development. An assumption was made here that a developer would require a 20 % return on sales in order to be motivated to assuming the risks associated with development. Conclusions: Market Data Approach Value: $250,000 or $3000 per acre. Subdivision Approach Value: $350,000 or $3900 per acre. Property owners perception of land value based on what developers have indicated land is worth: $12,000 per acre. Allen company indicated that the only way that a developer would pay this fee for the land would be on a contingency contract based on sewer and water availability. Sewer and water availability are 5-7 years away. Property owners do not need the money and are willing to wait. Options: Cannot pay more then the appraised market value , or a negotiated compromise on this, based on council directive. Bond Referendum; however bond proceeds to finance project costs usually have to be spent within 3 years from the date of issuance. The thought here was to use bond proceeds or other available city monies to invest in a interest bearing account to reach an acceptable land value to the property owners at the end r of a seven year period. Contract for deed; one-fifth down, where there is a five year payment schedule, interest is paid. on the unpaid balance at 6%