Minutes - Council - 09/28/2004 - Laserfiche WebLink

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City Attorney Goodrich reviewed that staff has been directed by the EDA to facilitate development and redevelopment activity and to acquire properties in the City's Development District No. I as willing sellers put their properties on the market. The property located at 14040 Azurite Street NW was put up for sale on the open market. Staff has obtained an appraisal and an environmental assessment of the property and has presented an offer of $532,000 for the property contingent on City Council approval. The purchase would include the building on the site, but would give Mr. Hanson the opportunity to remove the building should he choose by the closing date of December 31, 2004. In addition, one unique thing is that this purchase was initially approved as a possible condemnation of the property. Fortunately they were able to negotiate the property so the condemnation means were not necessary. Mr. Hanson would like the opportunity to lease back the property a~er the closing for a period up to 90 days rent-free. If the condenmation process had actually occurred prior to the City taking possession they would need to pay the owner ~ of the purchase price appraisal amount and then work out the financial price, and there would then be a 90-day period for the owner to occupy the property. Since condemnation was originally discussed, Mr. Hanson would like to be able to rent the property for 90 days rent-fi'ce. Any time longer than this would be at a rate of $1,000/month. This request is reasonably consistent with condemnation, however, if the property would have been condemned the purchase price would only be ~A of the appraisal. Councihnember Zimmerman questioned if the City would have to pay for relocation in the case of condemnation as well. City Attorney Goodrich replied that is a possibility, as well as legal fees. Consensus of the Council was to allow Mr. Hanson to rent the property for 90-days rent-free. Councihnember Elvig commented this seems reasonable. His only concern is that there is a lease and that there are responsibilities for the renter. City Attorney Goodrich indicated there will be a lease agreement. Gary I-Ianson, 14040 Azurite Street NW, noted Item No. 11 references Item No. 12 instead of Item No. 10 regarding representation. He explained there are three tenants to the building, which is covercd on page 4, item d. Two of these tenants are on a month-to-month basis and Bakestar has a one-year lease that comes up on December 31't, which a 14-day notice will handle. Regarding Item No. 7, the review period, he requested the possibility of moving up the closing (late closer to the Council approval. He stated he does not want to be carrying the tax burden forward. Hie will have to lock-in on another piece of property and pay for at the least leasing another piece of property. He would like to get the closing date as quickly as possible. Under this section there is about a 65-day delay due to environmental investigation on the property, but the Council has already hired someone to do an environmental inspection. He was wondering if it might be possible to waive that. City Attorney Goodrich indicated they will negotiate this and will also change the closing date. City Council/September 28, 2004 Page 11 of 17