CC PACKET 08111987 - Laserfiche WebLink

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MEMORANDUM DATE: August 21 , 1987 TO: Mayor and Councilmembers FROM: David M. Childs, City Manager. ITEM: PARKVIEW BUILDING PURCHASE In early ' 1987 officials from School District #282 and the City began discussions relative to the transfer of the Parkview facility to the City. This was in conjunction with cost saving measures by the School to move their Parkview- based operations to the High School building. After considerable negotiations; it appeared we had reached tentative agreement, which would provide for. such a transfer in ownership. The School at that time was reluctant to give the building to the City at no cost generally, because there are New Brighton taxpayers in ISD 282 who need to be assured that they are getting proper return on their tax dollars. However, since in " the remainder of the district the taxes paid -to the City or School are from the same local taxpayers, there should be no need for exchanging dollars relative -to exchanging ownership. Since the School had no money for a needed parking lot and playground and they wanted to free up some of their custodial staff to do the remodeling work at the High School, it was tentatively agreed that the City would construct a parking lot; small play area and maintain the outside of the school grounds for two summers . At the request of the School, the City prepared a purchase agreement to that effect. About this time, however, the School received estimates which showed their total cost to move from Parkview at about $273 ,000 (estimates are attached) . Since the School has about $63 ,000 available over the next three years, they ' came back to the City to .explain their need to get $210 ,000 from the:' City. in-Order to be able 'to sell the building. I reported this turn of 'events to the City Council, who responded that at $70 , 000 - - $80 ,000 in cost to the City, much of which would have been in kind and- ."forced account" . services the decision to take over the building made a lot of sense -on its own merit. When talking about a $210 ,000 cash- outlay, however , the Council felt that a more careful look at the City' s costs was needed prior to making a .purchase decision.