City Council Minutes 2015 05 19 - Laserfiche WebLink

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City Council Meeting Minutes May 19, 2015 Page 11 of 34 item. He noted the items were continued from the April 7 meeting rather than April 21, 2015. Mayor Muckle requested a staff presentation. Economic Development Director DeJong reviewed the purchase contract for 1125 Pine Street, which is a .39 acre parcel and approximately 55 feet wide. The parcel is needed for the Lee Avenue extension, which is included in the Highway 42 Plan. A component of the Highway 42 Plan is to keep the highway at 3 lanes and enhance local street network connections. During Highway 42 Plan preparation, concerns and opportunities were identified. The concerns include increased traffic; the affect to Miner's Field; and the impact on homes and neighborhoods. The opportunities include Hwy 42 improvements; transportation choices; Pine Street revitalization and emergency response. The property is owned by Petra Properties, LLC. Discussions began in September of 2013 and negotiations continued during 2014 and 2015. Several executive sessions where conducted to receive negotiating strategy. Two appraisals were conducted; one on January 8, 2014 for $335,000 value and the second was November 24, 2014 for a $270,000 value. There is an existing lease on the property for $1,800 per month, which expires March 31, 2016. The purchase price is $385,000, which is $50,000 above the highest appraisal. The seller is not willing to go any lower and the cost of condemnation would likely exceed the purchase price. The main terms of the contract are as follows: The total purchase price is $385,000, with $50,000 earnest money deposit. There will be no real estate commission owed by either party. Closing to be July 31, 2015 — Closing can be extended by Seller up until November 16, 2015 if they have not found an appropriate property for a 1031 exchange. City can extend up until November 16, 2015 if there isn't an effective ordinance. $50 /day penalty after July 31 if the City has the ability to close but such closing does not occur. The penalty doesn't apply for the reasons above. No real estate commission is owed by either party. The existing $1,800 per month lease remains on the property. The existing lease expires March 31, 2016. Fiscal impact: The purchase price is $385,000. In the future, funds are needed for design and construction of Lee Avenue extension. Staff recommendation: City Council approval of Resolution No. 18, Series 2015, the purchase contract for 1125 Pine and of Ordinance No. 1684, Series 2015 on first reading and set a public hearing June 2, 2015. COUNCIL COMMENTS