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<br />CASE #8 <br /> <br />CONSIDER THE SALE OF THE NORTH 120 FEET OF LOT 2, BLOCK 2, GATEWAY NORTH <br />INDUSTRIAL PARK TO DA VEPERKINS CONTRACTING <br /> <br />By: Sean Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />Dave Perkins Contracting has made an offer of $96,840 to purchase the northern third of the former Kill <br />parcel in Gateway North Industrial Park. The purchase is deemed necessary from Dave Perkins <br />Contracting to accommodate the growth of his current business and tenant. This business was previously <br />located on Bunker Lake Boulevard in an unattractive, highly visible metal building at the intersection of <br />Bunker Lake Boulevard and Basalt Street. The business relocated to its current Ramsey 20,000 SF <br />building utilizing concrete tip up panels in late 2005, and is located at 7060 143rd Avenue. The <br />construction of this facility was a big step for Dave Perkins Contracting and the need for additional space <br />for storage on site for himself and his tenant is apparent. The proposed use of the property is consistent <br />with the surrounding uses which mainly is the city Public Works site. The Perkins offer was based on <br />$3.001 square foot and it is in line with a recent letter of opinion dated June 5, 2008 by Certified Appraisal <br />Services. At the April 10, 2008 EDA meeting staff was directed to get an appraisal. to determine the <br />current value of the 32,280 SF of the former KIH parcel. The EDA recommends the sale of this parcel <br />based on a sales price that is supported by an appraisal. The offer is in range of the appraisal and staff is <br />now formally requesting that the City Council accept this offer and enter into a purchase agreement with <br />Dave Perkins Contracting to complete the sale. <br /> <br />The City purchased the entire Kill site for $332,988, not including delinquent taxes, based on an <br />appraisal done in 2007. The appraisal was $3.75/SFbut a negotiated price of $3.83/SF was paidby the <br />,City for its acquisition. The proposed remaining parcel can be combined with the adjacent road right of <br />way to form a two-plus acre parcel that would be very marketable. Vacating the road right of way would <br />allow the City to recapture some if the difference. If the road was not vacated the remaining parcel would <br />still be considered a buildable lot. <br /> <br />Funding Source: Not Applicable. Proceeds from the sale will be returned proportionately to the funds <br />used to purchase the site which was primarily the EDA Fund. <br /> <br />Recommendation: <br /> <br />Staff and the Ramsey EDA recommend that City Council enter into a purchase agreement to sell the <br />North 120 feet of Lot 2, Block 2, Gateway North Industrial Park to Dave Perkins Contracting for $96,840. <br /> <br />Council Action: <br /> <br />Motion to authorize the City Council to execute a purchase agreement to sell the North 120 feet of Lot 2, <br />Block 2, Gateway North Industrial Park to Dave Perkins Contracting for $96,840. <br /> <br />Attachments: <br /> <br />Letter of Opinion from CAS <br />Copy of 4/10/08 EDA minutes <br />Site Location Map <br /> <br />Reviewed by: .... /. <br />City Admipistrator ~~ ~ (A:J:try (h) <br /> <br />CC: 6.24.08 <br /> <br />-293- <br />