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<br />CASE #'7 <br /> <br />CONSIDER SALE OF SURPLUS PROPERTY LOCATED,AT 5860 157TH LANE <br />By: Steven Jankowski, City Engineer <br /> <br />Background: <br /> <br />Recall that this property was acquired for the purpose of extending Neon Street into the <br />proposed subdivision to the south and that currently there is a residence on this property <br />which the City Council had declared to be surplus property. Also recall that bids were <br />solicited for the removal of the property on September 20,2007. Only one bona fide bid <br />for $103.50 was received from Mr. Mark Pugh for removing the superstructure ofthe <br />residence. The City rejected that bid because it would not generate sufficient revenue to <br />remove the foundation which is estimated to cost $10,000. <br /> <br />Staffhas been contacted again by Mr. Pugh who has made a verbal offer of $5,000 for <br />the purchase of the superstructure of the residence. Mr. Pugh stated that he would be <br />interested in the removing the structure within the next couple of months which is a <br />relatively slow period for him. <br /> <br />Observations: <br /> <br />This surplus property has been publicly advertised as recently as September of 2007 with <br />little interest expressed. Mr. Pugh's offer of$5,000 is likely to be the most attractive offer <br />the City may receive on this property and represents half ofthe removal cost. Removal of <br />the residence will eliminate City responsibilities for continued maintenance and upkeep <br />on the structure. <br /> <br />Recommendation: <br /> <br />Staff recommends acceptance ofMr. Pugh's offer for the purchase of the structure <br />located at 5860 157th Lane. <br /> <br />Financial Impact: <br /> <br />Once the structure is removed the City will need to adequately remove and fill the <br />foundation at an estimated cost of $1 0,000. With the proceeds of the sale of this property <br />the City would need to allocate an additional $5,000 for the completion of this work by <br />the Public Works Department. It is proposed that this money be allocated from the Public <br />Improvement Revolving Fund. <br /> <br />Action: <br /> <br />Motion to recommend to City Council that it accept Mr. Pugh's offer for the purchase of <br />the structure located at 5860 15ih Lane, and that $5000 be allocated from the Public <br /> <br />55 <br />