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CASE # <br />ACQUISITION OF PROPERTY LOCATED WEST OF <br />ARMSTRONG BOULEVARD <br />Sean M. Sullivan, Economic Development / TIF Specialist <br />Background: <br />The EDA has discussed acquiring properties to facilitate economic Development within the City <br />of Ramsey. Recently the City has been contacted by an agent for 7 contiguous acres owned by <br />Kenko, Inc. The asking price for the seven acres is $700,000. It has been the past position of the <br />EDA to look to acquire properties that come up for sale in this area and to facilitate <br />redevelopment. <br />Observations: <br />The Kenko property (see attached map) is currently on the market and the asking price is <br />$700,000 which appears to be quite unreasonable considering recent property transactions in the <br />immediate area to land that does not have any city services available. For purposes of <br />comparison, details of the Menkveld transaction are provided below. The Menkveld property <br />(approximately 11 contiguous acres) located in this general vicinity, sold in June of 2002 for <br />$137,500, or $0.28 per square foot. Anoka County currently has a property value of $146,000 <br />for the Menkveld property. Using the sales ratio provided above would lead to a price of <br />$85,377. This price does appear to be somewhat low but a price of $700,000 is unreasonably <br />high. A funding source has not been identified for this transaction but Staff is looking for <br />direction to locate possible funding sources, including EDA funding, to acquire this property for <br />redevelopment purposes. Again, the EDA has expressed the need to acquire properties in this <br />area or to facilitate quality development when they become available. <br />Recommendation: <br />Staff is looking for direction to start and complete negotiations with the property owner and to <br />acquire the property for a fair market price assuming that a funding source can be located. <br />EDA Action: <br />Authorize City Staff to negotiate the acquisition of the Menkveld property (29-32-25-11-0003). <br />Reviewed by: <br />Jim Norman, City Administrator <br />Megan Wald, Associate Planner <br />EDA: 02/09/04 <br />