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'ity of <br /> <br />iveF <br /> <br /> TO: <br /> <br />VFROM: <br /> <br /> DATE: <br /> <br /> SUBJECT: <br /> <br />MEMORANDUM <br /> <br />Item #6.4. <br /> <br />Mayor & City Council <br /> <br />Paul T. Steinman, Director of Economic <br />Development <br /> <br />November 9, 1998 <br /> <br />Holt/Jackson Site Update <br /> <br />Issue <br /> <br />Staff recently received an offer for the purchase of the site located at the <br />corner of Holt and Jackson. The purpose of this agenda item is to provide an <br />update to the Council on the this offer and to direct staffto provide a <br />response. <br /> <br />Background <br /> <br />Mark A. Davis and Associates, Inc. has made an offer for this site in the <br />amount of $300,000. He has also requested that the City of Elk River be <br />responsible for paying his real estate commission in the amount of $24,000. <br />The net amount the city would receive from this transaction would be <br />$276,000. <br /> <br />The offer would require the site to be rezoned to allow construction of an <br />office building for dental and orthodontist related services. <br /> <br />Staff verbally responded to Mark A. Davis and Associates that it would not <br />recommend approval of the offer to the City Council at this time. Staff <br />suggested that a more appropriate offer would be one within which the city <br />would net out approximately $350,000. Mr. Davis indicated that his client <br />would then have to increase the offer to $350,000 and pay his related real <br />estate commission. This would mean that his client would have to put more <br />than $75,000 additional on the table in order to make this deal work. Mr. <br />Davis indicated his client would be unlikely to do so at this time. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />