5.1. SR 09-22-1997c,ty of
iver
MEMORANDUM
Item #5.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Adrr~il~ig~trator
September 22, 1997 ~
Purchase of the Residential Property
North of the Library
At the budget meeting on August 25, 1997, the City Council directed me to
pursue the purchase of property north of the Library along Proctor Avenue.
This is the home site of Mrs. Ryding who is represented by her son Gerald
Ryding. The intention of the city was to purchase this property for the
expansion of the Library parking lot. This would require the demolition and
removal of the existing home.
At the September 8, 1997, meeting I updated the Council on the progress
that had been made in attempting to purchase this home site. In this regard
I advise the Council that the city had hired local Realtor Mel Beaudry to
represent the city. Part of Mel's service was to evaluate the worth of the
property in order to help the city determine a fair offering price, negotiate
with the seller, and bring this purchase to closing before the end of the
month. I was pleased to advise the City Council that we were well on our
way to finalizing this acquisition.
At the September 15, 1997, City Council meeting a determination was made
by the City Council that no Planning Commission review of this acquisition
was necessary as it was consistent with our Comprehensive Plan.
A Purchase Agreement between the city and the Ryding family has been
signed subject to City Council approval. Mr. Beaudry presented the city with
sales information on five similar properties in the vicinity of the Library.
The city offered Mr. Ryding the average of these five purchases and this offer
was within 10 percent of the county assessed value for the property. I am
sure that Mr. Ryding desired more for the property, but Mel was convincing
in his negotiations and eventually this $83,000 city offer was accepted. If the
City Council accepts this Purchase Agreement amount then we will have a
Title Opinion prepared and we will close the transaction before the end of the
month.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
If we move forward with this transaction before the end of September, then
Phil Hals and Cliff Skogstad will have to visit with the City Council about
possible demolition of the house before winter and what type of site
preparation we want to pursue in anticipation of the expansion of the parking
lot.
Recommendation
It is recommended that the City Council authorize the purchase of the
Ryding property north of the Library in the amount of $83,000.
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