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0 • The prices are based on current market values in Saint Anthony for ramblers and have not been artificially inflated simply to be lowered to a"compromise" price. I expect the City to purchase these properties at these prices and the City should feel comfortable that they represent the fair market value as of two months ago. The City could have bought both properties for $246,000 at the outset of these proceedings, but declined to do so. The City could also have later bought these properties a few months later for$259,000, but declined to do so. The reality of sharply higher prices for these and similar ramblers in Saint Anthony can't be ignored and the trend will continue. As the City continues to refuse to purchase, the prices--whether for these two properties or other comparables in the neighborhood--will continue to increase. I don't think I'm telling the City anything it doesn't already know. I think the City is well aware of the significant jump in rambler prices in the first tier cities in the Minneapolis metropolitan area including Saint Anthony. The headline article in the Sunday Business section of the Minneapolis Tribune on June 6`h refers to the hot housing market and the bidding wars that are greeting Twin Cities home buyers searching for houses in popular neighborhoods. The article states that people looking for houses that are $150,000 or less are feeling the sting of a tight market. The article quotes the Regional MLS provided by the Minneapolis Area Association of Realtors for the entire Twin Cities metropolitan area for the four month period ended April 30, 1999 as having an average sale price of closed house sales of$149,500. • The headline article in the Saturday Business section of the Minneapolis Tribune on June 12, 1999 stated that the demand continued to drive up home prices. The article stated that the prices of closed home sales in May 1999 continued to be a record high according to Regional MLS data released by the Minneapolis Area Association of Realtors. A few days before the City proffered its current prices for 2700 and 2704 Pahl Avenue, the cover story in the Homes section of the Minneapolis Tribune on April 24, 1999 dealt with the high demand that was spurring sales before homes were even hitting the MLS. On June 8, 1999, KMSP Channel 11, in both their nightly newscasts, featured the local housing crunch. Statistics quoted in the newscasts include the following: • The local housing market is the hottest it's been in years. • The hottest market includes the first tier suburbs. • Ramblers are in the biggest demand and are in the shortest supply. • The $130,000- $150,000 range in housing prices creates a frenzy in buyers. • Houses priced under$150,000 are selling within hours of being listed. • Houses have sold for more than the appraised price. • Many of the houses priced under$150,000 sold for 10% to 20% over the asking price. • In order to purchase,buyers either have to move up in price or move out to a third tier suburb. The Minneapolis Tribune web site for houses listed in the MLS in the Mounds View/New Brighton/Saint Anthony area shows 18 listings as of today for the $133,500 - $170,000 price 2