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City Attorney Goodrich reviewed that staff has been directed by the EDA to facilitate <br />development and redevelopment activity and to acquire properties in the City's Development <br />District No. 1 as willing sellers put their properties on the market. The property located at 14040 <br />Azurite Street NW was put up for sale on the open market. Staff has obtained an appraisal and <br />an environmental assessment of the property and has presented an offer of $532,000 for the <br />property contingent on City Council approval. The purchase would include the building on the <br />site, but would give Mr. Hanson the opportunity to remove the building should he choose by the <br />closing date of December 31, 2004. In addition, one unique thing is that this purchase was <br />initially approved as a possible condemnation of the property. Fortunately they were able to <br />negotiate the property so the condemnation means were not necessary. Mr. Hanson would like <br />the opportunity to lease back the property after the closing for a period up to 90 days rent-free. If <br />the condemnation process had actually occurred prior to the City taking possession they would <br />need to pay the owner ¼ of the purchase price appraisal amount and then work out the financial <br />price, and there would then be a 90-day period for the owner to occupy the property. Since <br />condemnation was originally discussed, Mr. Hanson would like to be able to rent the property for <br />90 clays rent-fl'ee. Any time longer than this would be at a rate of $1,000/month. This request is <br />reasonably consistent with condemnation, however, if the property would have been condemned <br />the purchase price would only be h of the appraisal. <br /> <br />Councilmember Zimmemqan questioned if the City would have to pay for relocation in the case <br />of condemnation as well. <br /> <br />City Attorney Goodrich replied that is a possibility, as well as legal fees. <br /> <br />Consensus of the Council was to allow Mr. Hanson to rent the property for 90-days rent-free. <br /> <br />Councilmember Elvig commented this seems reasonable. His only concern is that there is a lease <br />and that there a'e responsibilities for the renter. <br /> <br />City Attorney Goodrich indicated there will be a lease a~eement. <br /> <br />Gary Hanson, 14040 Azurite Street NW, noted Item No. 11 references item No. 12 instead of <br />Item No. 10 regarding representation. He explained there are three tenants to the building, which <br />is covered on page 4, item d. Two of these tenants are on a month~to-rnonth basis and Bakestar <br />has a one-yea' lease that comes up on December 31~, which a 14-day notice ~vill handle. <br />Regarding item No. 7, the review period, he requested the possibility of moving up the closing <br />date closer to the Council approval. He stated he does not want to be carrying the tax burden <br />forward. He will have to lock in on another piece of property and pay for at the least leasing <br />another piece of property. He would like to get the closing date as quickly as possible. Under <br />this section there is about a 65-day delay due to envirormnental investigation on the property, but <br />the Council has already }aired someone to do an environmental inspection. He was wondering if <br />it might be possible to waive that. <br /> <br />City Attorney Goodrich indicated they will negotiate this and will also change the closing date. <br /> <br />City., Council/September 28, 2004 <br /> Page 11 of 17 <br /> <br />P65 <br /> <br /> <br />