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Agenda Number J.4 <br /> CITY OF HUGO COMMUNITY <br /> DEVELOPMENT DEPARTMENT <br /> MEMORANDUM <br /> TO: Mike Ericson, City Administrator <br /> FROM: Bryan Bear, Community Development Director <br /> SUBJECT: Jim and Kelly Powell Residence, 14625 Forest Blvd. N. <br /> DATE: May 12, 2005, for the City Council Meeting of May 16, 2005 <br /> 1. BACKGROUND AND ANALYSIS: <br /> Jim and Kelly Powell have approached the City regarding the possible sale of their residence. It <br /> is a four bedroom house with two bathrooms built in 1895 located on 0.93 acres of land at 14625 <br /> Forest Blvd. City staff shared with the Powell's the value of the residence determined by City <br /> Assessor Frank Langer, of$173,500. The Powell's decided to hire their own appraiser who <br /> recently determined the value to be approximately$265,000. City staff has reviewed the <br /> appraisal with Frank Langer,who has suggested that a reasonable market value for the residence <br /> would be$210,000. <br /> On May 12,2005, John Benson, Frank Langer and myself inspected the residence, and <br /> determined it to be in very good condition with no obvious structural problems. Living <br /> conditions in the house are good, and I would expect that the City could easily rent the property if <br /> it was purchased. The only concern noted during the inspection is the strong possibly that the <br /> house is clad with siding containing asbestos. Siding containing asbestos should not be a <br /> concern unless the building were to be demolished or re-sided. Since the property is a potential <br /> site for a redevelopment project,the City would be required to perform an environmental <br /> assessment before demolishing the building, and the presence of asbestos will substantially <br /> increase the cost of removing the building. <br /> The Powell's still appear to be interested in selling their house to the City,however they would <br /> like to lease the house back from the City until they find a new place to live. The staff is <br /> negotiating the terms and conditions for a purchase of the property. The purchase price of the <br /> property should not exceed $265,000. <br /> 2. STAFF RECOMMENDATION: <br /> The staff recommends the Council approve the purchase of the Powell residence at a price not to <br /> exceed $265,000. Subject to Council approval, the staff will immediately present a purchase <br /> agreement to the Powell's and will negotiate the terms and conditions for the purchase. <br /> 4 <br />