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Item No: 07C <br />Meeting Date: January 8, 2007 <br />Type of Business: CB <br />City Administrator Review: _______ <br /> <br />City of Mounds View Staff Report <br /> <br />To: Honorable Mayor and City Council <br />From: Fire Chief Nyle Zikmund <br /> Item Title/Subject: Resolution 6998, Resolution of Support for Sale of Fire Station <br />Number 3 Located at 1314 109th Avenue NE in Blaine. <br /> <br /> <br />Background: <br />As a component of the Fire Department Capital Improvement Plan funded by the sale of <br />Capital Improvement Bonds sold on November 17th, 2005, a new fire station located at <br />11920 Ulysses Street was approved. The new station has replaced the former fire <br />station three located at 1314 109th Avenue, N. E., Blaine, MN. <br /> <br />Completion of the new Fire Station Three located at 11920 Ulysses Street, N. E., <br />Blaine, MN occurred on October 30th, 2006. This allowed the fire department to vacate <br />the former station three as well as station five. <br /> <br />Disposal of the existing stations, specifically station three, was to sell the station and <br />land. The property immediately adjacent to the East, Kingswood Church, had indicated <br />a strong interest in purchasing the property from the initial time they learned of the Fire <br />Departments plan to build a new facility. <br /> <br />Appraisal: <br />An appraisal was completed on the property in the fall of 2005 and was updated this <br />past November. The appraised value was highest as a vacant lot, appraised at <br />$162,000. Cost of removal was estimated to be $25,000, thus the net proceeds was <br />estimated at $137,000. <br /> <br />Negotiated Offer: <br />The City of Blaine has reached a negotiated offer from Kingswood Church, located at <br />1264 109th Avenue N.E., Blaine and immediately adjacent to the eastern property line <br />for $184,000. The City of Blaine would provide to Kingswood Church, a clean site in <br />which the building is removed and the site restored. Restoration would include fill and <br />seed, removal of the irrigation system, and restoration of the curb line along the county <br />highway, 109th Avenue. Demolition and restoration costs are estimated at $25,000. <br />Thus the net proceeds from the property, prior to legal, closing, and appraisal costs, are <br />estimated at $159,000. This equates to $22,000 more, or 16% more than the appraised <br />value. <br /> <br />Sale Costs: <br />Appraisal, closing, and legal costs that to some degree have already been incurred by <br />the City of Blaine, are estimated to be approximately $10,000. Appraisal costs are <br />$5,900 with closing and legal anticipated at $2,000 each.