Minutes - Council - 02/22/2011 - Laserfiche WebLink

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Further discussion: Councilmember Wise pointed out this is an appropriate arrangement, taking into consideration that this is two - thirds of the work normally required. The parties are brought to the agent in this case, lessening his work. Councilmember Tossey questioned whether staff routinely brings in a broker when a situation like this develops. Development/Marketing Manager Backman responded that bringing in a broker is reserved for specific cases. However, there were several difficult issues related to this property, which warranted additional representation. Councilmember McGlone raised his concern that the City has put itself in a delicate situation with a real estate broker who is not working under a contract at the moment. He understands there are closed meetings so the information isn't made public, but if the City does not enter into a contract, he is not beholding to the City. He questioned how this situation could be prevented from happening again. Development/Marketing Manager Backman replied the City is under time constraints. The buyer is serious and well capitalized. He said he felt it was appropriate at the time to find the broker. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Elvig, Backous, Jeffrey, McGlone, Tossey, and Wise. Voting No: None. 7.04: Consider Resolution Authorizing Acquisition of Tax Forfeit Property City Attorney Goodrich reviewed the staff report. Public Works Director Olson noted this is a vacant park at this point. The staff has been meeting with the property owners and engaging their interest. City Attorney Goodrich indicated once this becomes park land, it has to remain as park land and if the City acquires it for park land, it has to pay for the land. If the City wants it for residential, it has to pay market price, which is stated on the taxes. Development Manager Lazan noted the price is within the fair market value range Councilmember McGlone commented it appears the purchase price would be $15,000 for residential use, which is less than the cost for a residential lot. He stated it seems as though the City is trying to create a park whether the community is amenable or not. Councilmember Elvig mentioned the property doesn't have value unless the City creates it. He suggested making an offer of half the asking amount and explaining the situation. City Attorney Goodrich replied a suggested amount cannot be offered because State Statute says it has to be market value. He suggested asking what the sellers would accept or possibly they would ask less than what the City would offer. Councilmember Tossey agreed with Councilmember Elvig, adding that the City would have to add infrastructure and extend sewer and water service from the street. He stated he would have been opposed to that. City Council / February 22, 2011 Page 6 of 9