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<br />Case # 3 . <br /> <br />CONSIDER SALE OF THE NORTH 120 FEET OF LOT 2, BLOCK 2, <br />GATEWAY NORTH INDUSTRIAL PARK <br /> <br />By: Sean Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />The City of Ramsey has been actively participating in redevelopment projects throughout the City. In February <br />the City acquired Lot 2, Block 2, Gateway North Industrial Park (formerly known as KIH) as part of a <br />condemnation action. Dave Perkins Contracting has an interest in purchasing the north 120 feet (32,280 S.F.) <br />of the lot at $2.14 per square foot for a total of $69,079.20. The terms ofMr. Perkins proposal are attached to <br />this case in a letter dated March 3,2008. <br /> <br />Mr. Perkins attempted to purchase the site directly from the previous owner in 2005 and also contacted the City <br />to discuss the property acquisition to fulfill the needs of his project in 2005. At the time of the inquiry in 2005- <br />6 the City had just purchased the site to the north (Dave Perkins Contracting's current site) and it supported the <br />$2.14 square foot price and this was factored into Mr. Perkins future project costs. In February 2008, the City <br />purchased the entire KIH parcel for $332,988 ($3.82/S.F.) which would relate to a price of $123,309 for the <br />portion Mr, Perkins needs for his growing busin~ss. This leaves a gap of $54,230 based on the expected and <br />actual cost for the land. Staff proposes that we split the difference in cost with Mr. Perkins which would be <br />$96,194 or $2.98/ S.F. which is consistent with other industrial land in the City. This would be a fair gesture <br />considering that the price of land was approximately $2.14 when the City commenced its condemnation action <br />and the property was withheld from the market for a period of nearly 2 years. Staff recommendation is to <br />proceed with the above described land cost of $96,194 and to enter into a purchase agreement for that <br />transaction. <br /> <br />Funding Source: <br /> <br />N/A <br /> <br />Recommendation: <br /> <br />Staff recommends approval of the sale of the north 32,280 S.F. at the price of $96,194 and to recommend that <br />the City Council enter into a Purchase Agreement for the sale of that property. <br /> <br />EDA Action: <br /> <br />Motion to approve of the sale of the north 32,280 S.F. at the price of $96,194 and to recommend that the City <br />Council enter into a Purchase Agreement for the sale of that property <br /> <br />Enclosures <br />Letter to City from Dave Perkins Contracting <br />Site Location Map <br /> <br />EDA: 04.10.08 <br /> <br />33 <br />