5.0. 6.0. 7.0. 8.0. EDSR 05-10-1999

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Economic Development Agenda Memo May 6, 1999 Page 2 What follows are the parameters of the Brown purchase: • $1.13 million purchase price(includes moving expenses) • Subtract $650,000 (federal funds) • Remaining equal s $480,000 (to be funded from development fund) The $480,000 remaining to be funded through the development fund is proposed to carry a 7 percent interest rate, a 5 year term, with semi annual payments due. Additional financial responsibilities of the EDA upon purchase of this property include: • Pay off approximately $250,000 in assessments against the Brown property. (Proposed development fund expenditure) Staff will review the issue of the assessments against the property in November or December 1999, and make a recommendation to the EDA regarding either paying those assessments off in one lump sum or making annual payments. Staff believes it is important to wait until Aik• November or December of this year to'look at the precise situation of the development fund prior to making a recommendation on the assessment issue. Recommendation Staff recommends the EDA authorize execution of a purchase agreement with the Browns based upon the parameters outlined above, contingent upon the City Council authorizing the EDA's use of the development fund for this purpose. Kirkeide Purchase At this time it appears a deal cannot be worked out with the Kirkeides for the purchase of their property. The property is not absolutely essential to the eastern area utility/road project, however, the 2.5 acres will lie directly in the center of the business park and at some point the EDA or private developer will likely want to use their property for some type of business park development. No action is required on the Kirkeide purchase at this time. •