10/21/08 Special Meeting - Laserfiche WebLink

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Assistant City Engineer Himmer stated that the water tower would probably use about a 300 x 300 area, including a maintenance area. Community Development Director Miller reminded the Commission that the only suitable soils for the water tower were on the 14.2 acre parcel. Commissioner Elvig asked if Mr. Peterson has told the City what he wants for the land. Assistant City Engineer Himmer stated that Mr. Peterson had only told the City that he owes . $500,000 on the property. He stated that he doesn't think he is in the best fin~cial situation and would not be surprised if the land is turned over to the bank in the not too distant future. He stated that if the City takes the 14.2 acres, Mr. Peterson would also like the City to take the 3.1 acre parcel. Commissioner Gamec suggested the City offer $500,000 for the whole parcel. Assistant City Engineer Himmer stated that the 2008 estimated market value from the County for the 16600 St. Francis Boulevard parcel is $320,000. Commissioner Elvig suggested offering $500,000 for the 14.2 acre and 3.1 acre parcels and let them reap the reward for resale of the existing home. He stated that Mr. Peterson let the City have an easement across his property to get to Elmcrest Park. He stated that if the property was sold and the next owner doesn't want to allow that easement there would be a huge problem. Commissioner Look stated that the low range from the appraiser for the 14.2 parcel was $683,741 and the County assessment was only $320,000. He stated that this means the appraiser that the City hired basically doubled the value. Assistant C.ity Engineer Himmer stated that the appraiser based his figure on the assumption that there would be sewer and water readily available. Comniissioner Strommen asked that if the land is used to gain access to Elmcrest Park, whether that would open up park funds to be used for acquisition costs. She stated that she thinks the access issue is a bigger, long term issue, especially ifthe land goes back to the bank. Assistant City Engineer Himmer read aloud the 60 foot temporary easement that states that this easement will explore when the City dedicates a permanent right of way. Chairperson Olson clarified that Commissioner Elvig was suggesting that the City make an offer for the 14.2 acre and 3.1 acre parcels at $500,000. Commissioner Elvig confirmed that this is his suggestion and the City could even throw in the house on top, so the owner could move it or sell it. Community Development Director Miller asked what funding source was proposed. Housing and Redevelopment Authority I August 26, 2008 Page 7 of to 7