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Iteml 4.4. <br /> • �i <br /> City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Mayor and Council <br /> FROM: Pat Klaers, City Administrator <br /> DATE: September 17, 2001 <br /> SUBJECT: Consider Bailey Purchase Agreement <br /> This past winter the City Council reviewed an appraisal (by Jerry Smith) for the Bailey <br /> property. The City Council authorized and paid for this appraisal. The Bailey property is on <br /> Quinn Avenue between 5th Street and 4th Street and is adjacent to the southwest part of the <br /> library parking lot (see attached map). After review of the appraisal, it was the consensus of <br /> • the City Council to pursue the purchase of the Bailey property. The purchase of this <br /> property makes good planning sense for the future library expansion. <br /> Last spring, the city and the attorney for Mrs. Bailey looked at a draft standard purchase <br /> agreement. After discussion of the purchase agreement and evaluation of the situation it was <br /> decided to consider a life estate arrangement. Staff feels that this is the best type of <br /> arrangement for the city as we pay now for the property (at the appraised value) and the city <br /> obtains the property when Mrs. Bailey moves out or is no longer living. With this <br /> arrangement the city has no issues with leasing or renting the property back to Mrs. Bailey, <br /> dealing with maintenance of the property, insurance, taxes, etc. The city has no immediate <br /> plans for expansion of the library or its parking lot and we can wait a number of years to <br /> obtain control of this property. <br /> The total amount of funds for this purchase is available in the library reserves. If this <br /> transaction moves forward, the city will continue to look at the site configuration and will <br /> have discussions with adjacent property owners as appropriate. <br /> One final item to note, and this relates to the Planning Commission review of land <br /> transactions. The City Council can waive Planning Commission (review by resolution <br /> adopted by two-thirds vote) if the Council finds that the acquisition has no relation to the <br /> comprehensive plan. If Council wants to dispense with the Planning Commission review, it <br /> can adopt the attached resolution and subsequently approve the purchase agreement. I think <br /> • that the Council could make this finding, as the library is not specifically mentioned at all in <br />