|
5. EDA BUSINESS
<br /> A. Public Hearing 7:05 p.m., for the Consideration of Resolution 99-EDA-116, a
<br /> Resolution approving the Sale of City owned Property located at 6991
<br /> Pleasant View Drive to Vista Construction, Inc.
<br /> President Coughlin opened the Public Hearing at 7:30 p.m.
<br /> Economic Development Coordinator Kevin Carroll stated that prior to leaving the City, Housing
<br /> Inspector Steve Dorgan, had come before the EDA periodically to discuss this project. He stated
<br /> this project was involved in the City's Housing Replacement Program. He stated the owner of
<br /> the property had expressed an interest in participating in the program, in April of 1998. He
<br /> stated, at that time, the City, with the EDA's consent, obtained an appraisal of the value of the
<br /> property. He stated the property was purchased from the owner for$60,500 which was the
<br /> assessed value at that time.
<br /> Economic Development Coordinator stated the property was located at 6991, Pleasant View
<br /> Drive, on the southeast corner of the City. He stated it was a nice lot, with trees,which slopes
<br /> off towards the back. He stated the appraisal of the land itself, in June of 1998, was $35,000, and
<br /> once the property was acquired by the City, and the house and garage were removed, the
<br /> property was put up for sale, and the City received five bids. He stated the City had established a
<br /> minimum asking price of the lot of$40,000.
<br /> Economic Development Coordinator Carroll stated Marquis Builders, Inc. a developer, was the
<br /> high bidder, with an offer of$49,500 for the lot. He stated they had proposed to build a 16,000
<br /> square foot residence, and the total value of the property after the construction of the home was
<br /> projected to be $184,500. Mr. Carroll stated, unfortunately, after a substantial amount of time
<br /> had been devoted to this proposal, Marquis' purchaser withdrew from the project. He provided
<br /> the EDA with copies of a letter explaining the circumstances of that withdrawal. He noted that
<br /> Marquis had paid a$500 non-refundable deposit which they forfeited upon withdrawal, and this
<br /> money would be used to cover some of the costs involved, and redoing some of the legal work.
<br /> Economic Development Coordinator Carroll stated, when it became apparent in July that
<br /> Marquis was not going to be able to proceed, attention turned to the second highest bidder, Vista
<br /> Construction, Inc. He stated that Vista proposed a purchase price of$47,250, which was 4.5
<br /> percent less that Marquis had offered. He stated however, Vista proposes to construct a larger
<br /> home, of 1860 square feet, which is 16 percent larger than Marquis had proposed. He stated the
<br /> total value of the house, once constructed was projected to be very similar to the total value
<br /> Marquis had projected. He stated they proceeded to sign a participation agreement with Vista,
<br /> who paid a$500 non-refundable deposit. He stated, as a result of signing the participation
<br /> agreement, Vista had the exclusive right to enter into a more complicated redevelopment
<br /> agreement with the City.
<br /> 2C:\ADMIN\MINUTES\EDA\8-9-99.EDA
<br />
|