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<br />Councilmember Jeffrey stated he understands normal wear and tear; however, at the time we <br />assume the property, the scale has to be in working condition. <br /> <br />Mr. Olson commented that we will use the scale to weigh our trucks, etc. <br /> <br />Mr. Goodrich stated these are the main issues that he needs to go back and talk to Mr. Bury <br />about. The relocation escrow would be released two years after the tenants have left. We need <br />some leverage that the property is cleaned up at the time he leaves. <br /> <br />Councilmember Dehen stated that the purchase price of$1.75 million is the price of the land and <br />relocation of equipment and that's our money and now we are not getting it today and we are <br />allowing him to have use of that property. He inquired if the purchase price shouldn't then be <br />going down. <br /> <br />Mr. Olson stated that the price started out higher and has come down. The cost of the property if <br />we took it immediately would be seventy-eight thousand dollars more per year. <br /> <br />Councilmember Dehen stated that approximately $1.3 million (City) and $1.8 million (Bury) - <br />the price worked out to $1.593 million was the value of the property as it is today. So - we add <br />back in the relocation of $100,000 and equipment to get it up to his number of $1,862 - that's <br />today dollars but we are letting him have that property to use - shouldn't that price be coming <br />down. <br /> <br />Mayor Gamec stated that the City would be collecting taxes on the property. <br /> <br />Mr. Olson stated that Mr. Bury has said he will not sell it for the amount listed on the approval. <br />He came to us with the initial offer of $4 million - we said we would get appraisals and discuss <br />this with the Council. We did the phase 1 environmental work. The appraisals came in - Mr. <br />Bury he then came down to 2.5 million and in order to make this deal work - he said he would <br />have to have 2.5 million. When Mr. Olson told him he could not do that, Mr. Bury said he had <br />other buyers that would be interested in that proposal. <br /> <br />Councilmember Dehen stated that the appraisal at $1.3 did not factor in the value of the <br />conditional use permit. <br /> <br />Mr. Olson stated in order to make a willing sale with a willing buyer - if we took it today - it <br />would be an additional $78,000 per year for the first five years and $58,000 since we already <br />agreed to the 10 acres of 21. <br /> <br />Councilmember Dehen stated that the property was valued between $1.3 and $1.9 million and we <br />agreed to negotiate the price and approved $1.6 with the ability for him to continue to operate on <br />that site. Had the appraisal come in at $1.9 million and presumably it did not have the negotiated <br />amount in it -we would take it in 10 years. <br /> <br />Mr. Olson stated that the $1.8 million option is therefore the next 10 years. <br /> <br />Special City Council Meeting /February 19,2008 <br />Page 5 of9 <br />