Agenda - Parks and Recreation Commission - 11/12/2015

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with the density proposed, would be 10%, or approximately 3.2 acres. Park dedication on the Thompson Parcel has already been satisfied per the terms of the 1987 Park Dedication Agreement as amended in 1989. The City is, therefore, entitled to between six and seven acres in Outlot E. If the City desires the balance of the 30 acres of Outlot E, North Fork believes it is entitled to some compensation. As shown on the attached sketch plan North Fork could arguably develop six lots on the site. The development costs should not exceed $150,000. The lots would be expected to sell for at least $50,000.00 each. A sale price of $300,000 less development costs of $150,000 would yield North Fork proceeds of $150,000. Because there remain outstanding issues including the placement of the City's 6+ acres, North Fork would be willing to reduce the sale price to $75,000. This amounts to approximately $2500 per acre. The current assessed value is $7000 per acre. If desired the purchase price could be paid in installments. As a final agreement North Fork would propose the following: North Fork would convey fee title to the City for all of Outlot E. Outlot E would be removed from the tax rolls so that North Fork would owe no further real estate taxes on the parcel Park and trail fees for North Fork's remaining parcels would be deemed satisfied. The City would pay to North Fork the sum of $75,000, in reasonable installments if desired. We would ask that you forward the foregoing letter to your Park Commission for its review, If you have any questions or need some additional information, please let us know. Sincerely, Dennis F. Peck Director of Development