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5.2. SR 11-06-2006 City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Administration November 6, 2006 Item Description Re uest from Habitat for Humani Item Number 5.2. Prepared by Lori ohnson, Ci Administrator Reviewed by Introduction Vance Zerhinger, Sherburne County Chapter Habitat for Humanity President, is requesting that the Council consider an offer from Habitat for Humanity to purchase the city owned vacant lot at 1217 5th Street, NW. Discussion This lot was originally purchased to accommodate future library expansion and is no longer needed for that purpose. At a recent Council meeting, the Council directed staff to market the lot based on the appraised value of $50,000. The lot sale has not yet been advertised; therefore, no other offers have been received. Mr. Zerhinger is submitting an offer now based on Council action to market the property. Financial Impact Proceeds of the sale will be used to fund library debt service. Attachments · Letter from Mr. Zehringer Action Requested Consider request from Habitat for Humanity. Council Action Motion by _ Second by _ Vote Follow Up C: \Documents and Settings \ tallard\Local Settings \ Temporary Internet Files \ OLKF\Habitat Lot.doc November I, 2006 NOV 0 2 ZlJOf5 Elk River City Council 13065 Orono Parkway Elk River, MN 55330 Subject: Sale of property at 1217 5th St NW Habitat For Humanity is an ecumenical nonprofit organization with a mission of building safe, decent housing for those in need -- one house at a time. We are active in over 110 countries and are presently building a home for the needy every 24 minutes. We rely on donations of labor and discounted materials to accomplish our mission. The Sherburne County Chapter, Habitat For Humanity has been active in the Elk River area and has completed two houses within the City limits, one in 2005 and one in 2006. We are planning our 2007 project and have already selected a needy family. The lot that we thought would be available to us for this project suddenly became unavailable so we are in dire need of a one to get started. The Thrivent grant we recently received for this project stipulates we must secure a lot by Ian 15,2007, and we must complete the project by Nov 1,2007. If these conditions can't be met, the grant goes elsewhere, so there is a degree of urgency in this request! The ad in last weeks Star News indicates the City of Elk River is now ready to sell the vacant lot that was purchased for the Library expansion. Weare very much interested in this lot, but since our grant is for $112,000 we would be hard pressed to come up with the appraised value of $50,000, and still have enough to build the house. Would the City be willing to sell the lot for an amount closer to the assessed value of $20,OOO? We believe this lot is right for a Habitat for Humanity home, and you can be assured the home we would build would be an asset to the neighborhood and would blend nicely with existing homes. I would be happy to discuss this request with you at the No" 6 City Council meeting. Thanks in advance for your consideration of this request. Sin~ly, " !/ tU~~~~ Vance Zehrin r ~ -_/' President, S erburne County Chapter HFH.