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Summary (Page Two of Two) Staff Report Noa EDA 96-61C I have prepared a resolution which would provide staff with the authorization to negotiate and execute a purchase agreement. Once Norwest mal<es a decision rega�•ding who they would like to sell the property to this would allow staff to continue the process without further delay. if a purchase agreement is signed, Norwest would require some earnest tnoney toward that purchase. I am proposing 1% of the purchase price which is a standard percentage for earnest money in real esfate transactions. The purchase price of the property would come fi•om available tax increment funds that were set aside for Highway 10 redevelopment. This property was identified as a priority as part of the discussion by the EDA earlier this year regarding redevelopment sections along Highway 10. It was identified as blighted and non conforming with the surrounding land uses and the suggested strategy was to consider land use options and redevelopment/acquisition possibilities. The County Assessed value of the property is $75,300 with an estimated marlcet value of $125,500. Total taxes paid iu 1995 totaled $3,184 witli City taxes totaling approximate(y $573. Earlier this year the property was being offered for a sale of $225,000. Purchasing the pi•operty would allow the City to evaluate if the current land use is compatible with the surrounding area and develop strategies for its redeveloptnent.