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4.✓ 5548 LAKE ELMO AVENUE NO. • LAKE ELMO, MINNESOTA 55042-0457 • 51W777.8.755 May 23, 1989 ➢onald C. Wisniewski Director of Public Works/County Engineer Washington County Public Works Dept. 11660 North Myer= Road Stillwater, MN 55082 RE: Proposed Gift of Building for Branch Library Dear Mr. Wisniewski: Enclosed is a copy of a letter from our accountant, Tom Williams, dated May 22, 1989. As you can see, the letter is addressed to me and describes the options available to us if we are to make a gift (or partial gift) of our present building for a branch library. i' As Mr. Williams' letter explains, the Commissioner of Commerce has granted approval of our proposal to give our present building to Washington County for library purposes, but that approval is based on the condition that we do not reduce our capital as a result of the gift. Our capital basis in the building is now in excess of $200,000. When we first proposed the gift to the County, we anticipated making the gift and taking a tax deduction based on the $606,000 appraised value of the building. The present value of that tax deduction, as calculated by our accountants, is approximately $240,000; by securing that tax deduction, we would satisfy the condition of the Commissioner's, Unfortunately, the changes in the Federal tax laws have made the gifting a very complicated transaction. The steps in the transaction would have to be as outlined in Tom Williams' letter. At this point, we renew our offer to give the building to the County for library purposes as proposed in my original letter, dated March 16, 1988 (a copy of which is enclosed). As originally proposed, that gift would have to be made as recommended by our CPA's and as approved by the Commissioner of Commerce, If we are to complete the transaction on that basis, we should review the seven steps outlined by Tom Williams and describe the gifting program in a letter of intent (item #4 paints out that we cannot have a binding legal agreement).