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<br />Mr. Jankowski advised in addition to the costs associated with the purchase of this property it <br />would be necessary to fund the construction of the connecting roadway and the underlying <br />utilities. Currently the abandonment of the River Pines lift station is scheduled for 2007 at a cost <br />of$75,000. In addition the watermain should be looped through this roadway at a cost of$7,500. <br /> <br />Councilmember Dehen asked if this type of house moving project has been done by the City in <br />the past. <br /> <br />City Engineer Jankowski replied in 1990 when Alpine Drive was pushed through from CR 5 to <br />Ramsey Boulevard there was one house that was picked up and turned. A new foundation had to <br />be built to set the house on. Everything had to be brought up to code, which is a large cost <br />associated with moving these houses. This house is only seven years old so there may not be a <br />lot of cost associated with bringing it up to code. <br /> <br />Chairperson Elvig observed it is not uncommon for an HRA to do something like this. The <br />Council has discussed moving homes into areas with similar type homes to open up areas for <br />redevelopment. <br /> <br />Public Works Director Olson advised another challenge is the possibility of City liability if there <br />were to be an issue like a roof leak in the future. The City does not act as landlord very often, <br />and they try not to when possible. There are risks the City will take from the perspective of <br />being the seller. <br /> <br />Councilmember Olson indicated she deals with properties owned by the U.S. Government often. <br />They sell their properties as is and make that very clear. A home warranty plan could be <br />purchased for one year to give the homeowner some assurance, but beyond that it should be <br />made clear the sale is as is. The other issue is that the lower level of this house is completely <br />finished with a sauna room, bedroom, family room, and den. With the elimination of this the <br />market price would likely be reduced to at least $250,000. <br /> <br />Councilmember Dehen requested information on why this purchase consideration is coming <br />forward at this time. <br /> <br />City Engineer Jankowski explained there is a plat approved to the south of this with a long cul- <br />de-sac. It is not imperative that this connection go through, but Council has give direction that <br />they would like to eliminate long cul-de-sacs which represent a safety issue when there is one <br />access serving a large number of homes. When there is severe weather, areas served with one <br />connection are checked right away to be sure it is open in case of emergencies. Council directed <br />staff to negotiate a first right of refusal on this property. Purchasing the house when it is for sale <br />is much easier than obtaining it when it is not for sale. <br /> <br />Public Works Director Olson indicated the direction of the Council was to negotiate a first right <br />of refusal on the property. However, that would not be any good if the City is not willing to go <br />forward with the purchase when the property is up for sale. This home has been up for sale for a <br />few months. <br /> <br />Public Works Committee / January 16, 2007 <br />Page 4 of 13 <br />