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<br />. <br /> <br />. <br /> <br />. <br /> <br />annualized return on the investment. With the changes that have occurred since 1996, <br />this offer is ridiculously low. Even Allina, in its most recent letter which said they were <br />firm in their $6.50 price, indicated that they wanted us to provide them with, in effect, a <br />financial incentive. While there may be times to provide incentives to businesses to <br />attract them, I do not see this as the case in this situation - especially at this location. <br /> <br />3. <br /> <br />While the owner of the adjacent properties might be willing to accept only $6.50 per sq. <br />ft., he may have other reasons for selling at this time. In addition, the price reflects the <br />fact that he can't complete the deal without the City's portion. The foresight shown in <br />1996 by purchasing the middle parcel must result in a premium price. <br /> <br />4. <br /> <br />The value to the City of having an asset which could produce, perhaps conservatively, a <br />quarter of a million dollars or more of profit per year is probably at least a couple million <br />dollars. <br /> <br />5. <br /> <br />Even if Allina was willing to pay whatever the open market fair market price, the price <br />will not even come close to the value the land has to the City (both financially and <br />otherwise) for its liquor store purpose. <br /> <br />In conclusion, I respectfully request that the offer by Allina be rejected and that no further offers <br />for the purchase of the parcel be considered. (An exchange for the comer lot being a possible <br />exception. ) <br /> <br />I realize this memo is quite lengthy. Thank you for taking the time to consider my thoughts. <br /> <br />Sincerely, <br /> <br /> <br />Page 5 of 5 <br />