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cmr OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section 14. STAFF REPORT Report Number: Y6— /? (,WS [11r6U• Report Date: 10/31/96 �� WORK SESSION MEETING DATE -1 November 4. 1996 ' 84'rj-PartnetS Item Description:Discussion of 2975 Highway 10 Administrator's Review/Recommendation: -No Comments to supplement this report -Comments attached. Explanation/Summary(attach supplement sheets as necessary)' Summary: I received a call from Glen McCabe of Norwest Bank regarding the ownership status of the vacant Auto Central Property located at 2975 Highway 10. As you recall,the property went into foreclosure status with the Bank for a sum of$150,000 in June of 1995. As part of foreclose proceedings,there was a sherif sale,whereby the note on the property could be purchased. The bank continued to hold the note with a redemption period of 6 months. The redemption period allows the owner the right to make the note current and get the property back within the six month period. The redemption period ended October 5, 1996. Now the bank is prepared to sell the property and wanted to discuss the possible sale to the City, as a courtesy,prior to putting it.on the market. McCabe has had a few inquiries regarding the property. I do know that an application for a conditional use permit ilkbeen submitted to the planning commission regarding the property for a limited service station. The application s heard at the October 9, 1996 work session of the Planning Commission. The applicant did not come to the meeting and the Planning Commission discussed additional improvements to the property regarding the parking lot, fence and curb cut on Highway 10. In an attempt to convey the additional conditions by staff,the applicant decided not to proceed at this time with a formal application. The property is .62 acres,zoned B-3 and has a 1995 assessed value of$75,300. This summer the property was being represented by Ken Shodin with an asking price of$250,000. Norwest Bank is offering the property to the City for $106,000 which would include the payment of$16,000 in back taxes. This price equals$3.87 per s.f. Or, as an alternative,they would sell the property for$90,000 and we would be responsible for the back taxes. I will be checking with the County to verify the back taxes and also to see if the property has delinquent fees that they owe the City. In addition,I called the State Pollution Control Agency to see if they had records of contaminates on the property. At first glance they do not have any records but someone who handles the area was going to call me back. I will bring more information to the work session for discussion. LAI geAA.M L,c - Cathy Bennett,Econ. Dev. Coordinator