Laserfiche WebLink
• <br /> City of Elk River <br /> Michele McPherson <br /> Director of Planning <br /> 13065 Orono Parkway <br /> Elk River, MN 55330 <br /> Dear Ms. McPherson; December 3, 2001 <br /> Can you believe it is already December? We first got started in the middle of the summer <br /> discussing options for our 70-acre parcel to be considered for a regional park just north of <br /> the city of Elk River. Since the first meeting in September 2001 and the city council <br /> meeting in November, our aspirations are still to have this land developed into a park. <br /> The amenities within the property and the surrounding future developable land make this, <br /> in my opinion,the perfect site for a city-wide park. <br /> During the first meeting in September there were some issues to our original proposal of <br /> $10,000 per acre that have been resolved with the November, 2001 appraisal. The <br /> November meeting raised some issues with the depletion of 2/3 of the Park and <br /> Recreation's reserve account with a full price cash offer. Depleting 2/3 of the reserve <br /> account was never our intention. All along we have proposed structuring an offer that <br /> da allow p <br /> would w for half of the purchase price p rice down and the balance to be aid over five- <br /> years o o <br /> years on a contract for deed. Our thoughts have not changed regarding this type of <br /> financing consideration. The only concern we have is that the value of the property in <br /> this area is appreciating at an accelerated rate. Delaying a decision for even a month or <br /> two has some financial ramifications. If the fair market value today is $7,800 per acre <br /> and the property is appreciating 10%per year, each month of delay could reflect a cost to <br /> one of us of approximately $4,170 per month. So the January workshop couldn't come at <br /> a better time. <br /> In preparation for the January 5, 2002 workshop and the January 22, 2002 City Council <br /> meeting we wanted to give you an idea of what would work out for us and hopefully <br /> work out for the city as well. <br /> The proposal we would like The City of Elk River to consider is as follows: <br /> Purchase Price: $546,000 <br /> Down Payment: $273,000 <br /> Balance Due: $273,000 <br /> Finance Rate: 8% (The rate would match the Bank of Elk River's rate on <br /> the date of closing) <br /> Term: 60-months <br /> Payments: $ 5,535 (Per-month) <br /> • <br />