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Case #2: Consider Final Payment for Purchase of Community Park #5 <br /> <br />City Administrator Norman stated that during the City Council meeting of December 8, 1998, <br />the City Council authorized the acquisition of Community Park #5, from Mr. Vernon Halderson <br />et. al., in the amount of $205,000. The purchase was structured into two payments, with the first <br />portion paid prior to the end of 1998, in the amount of $120,000. The final payment of $85,000 <br />is payable by June 30, 1999. The 1998 payment was funded from the Park Trust Fund and it was <br />anticipated that the second payment would be made from a newly created fund after the City had <br />created a storm water management utility fee system. It was City Council's desire during <br />consideration of the land purchase that ultimately that Park Trust Fund would be repaid the <br />$120,000 to provide for initiation of park development within the five-year time frame. Mr. <br />Norman explained that with the second payment scheduled for June 30, 1999, staff is requesting <br />direction from the City Council for payment preference. He noted that the storm water <br />management utility system has yet to be established. <br /> <br />Councilmember Zimmerman questioned if a breakdown by subdivision was available for park <br />dedication fees. <br /> <br />Finance Officer Lund replied that $142,000 was collected in park dedication for 1998 and that <br />she would prepare a breakdown of the fees. <br /> <br />City Administrator Norman questioned if the City should continue the policy of receiving money <br />from its own park district. <br /> <br />Councilmember Zimmerman stated that park dedication should come out of that district. He <br />questioned where the initial $120,000 came from. <br /> <br />City Administrator Norman stated that it would be taken from a city-wide fund. <br /> <br />Finance Officer Lund explained that the intention is that the $120,000 will be paid back by future <br />park dedication funds. <br /> <br />Councilmember Zimmerman requested more information on the estimated park dedication that is <br />expected to be received in that district. <br /> <br />Councilmember Hendriksen stated that since the first payment was borrowed from the Park Trust <br />Fund, he suggested borrowing money to pay the second payment from the Park Trust Fund also <br />and determine how the money will be repaid at a later date. <br /> <br />Mayor Gamec stated that since Central Park is a community park, that all districts should support <br />the park. <br /> <br />Councilmember Hendriksen questioned if there was a difference with using money from other <br />districts for a city-wide park as to a neighborhood park. <br /> <br />Finance Committee/June 8, 1999 <br /> Page 3 of 4 <br /> <br /> <br />