Laserfiche WebLink
<br />City Council Minutes <br />December 5, 2005 <br /> <br />Page 5 <br /> <br />. <br /> <br />Councilmember Dietz verified that the $375,000 is what Mr. McMurchie would recommend <br />that the city pay for Pinewood. Mr. McMurchie explained that as a golf course business, the <br />maximum purchase price that he would suggest paying is $375,000 minus the $175,000 of <br />improvement costs. <br /> <br />Parks and Recreation Director Bill Maertz stated that he believes the golf course would be a <br />great recreational amenity for the citizens but that $2.4 million is too much for the city to <br />pay. <br /> <br />Mayor Klinzing indicated that the City Council asked for Pinewood to be appraised as a golf <br />course and that she knew the appraisal would come in at less than $2.4 million but she is <br />surprised it came in so low. She stated that the revised Letter of Intent has not been sent <br />and that the Council can chose to either continue with the current Letter of Intent or <br />modify it. <br /> <br />Councilmember Motin stated that the Letter of Intent requires the appraisal to come in at <br />$2.4 million as a golf course and since the appraisal came in no where near that amount, the <br />letter would fail on its own terms. <br /> <br />Councilmember Farber indicated that he is baffled by the low appraisal. He stated that the <br />26 acres of land is worth more than the $375,000 appraised value. <br /> <br />. <br /> <br />Councilmember Dietz stated that based on the appraisal, the Council can not continue with <br />the current Letter of Intent. He stated that the Council could resume discussions with Mr. <br />Krause and see if he will take less money for the course. <br /> <br />Councilmember Farber questioned if the $375,000 included the land, buildings, and <br />equipment. Mr. McMurchie indicated that the $375,000 is the total value of the golf course <br />as a business. He explained that is the maximum amount that one could obtain financing for <br />on the Pinewood Golf Course. Mr. McMurchie noted that the inventory that exists on the <br />course is minimal and dated. Councilmember Farber explained that he does not believe the <br />$375,000 is a reasonable appraisal for Pinewood and he would like to see the land value <br />appraised. <br /> <br />Mayor Klinzing stated that the owner of Pinewood indicated to the Council that he would <br />like $2.4 million for the golf course and that the Council needs to decide to what extent they <br />are willing to go to save the golf course. She indicated that she has concerns that the city <br />would need to spend $175,000 in improvements just to open the golf course and that <br />additional money may need to be spent to bring it up to city standards. <br /> <br />Mr. McMurchie noted that he has never seen a city purchase a golf course and then turn <br />around ~d sell it for residential development and that it would be politically difficult to do. <br /> <br />Councilmember Dietz suggested that the Mayor speak to Mr. Krause regarding these <br />[mdings and report back to the Council. City Attorney Peter Beck indicated that he spoke to <br />Mr. Krause and his attorney last week and they would like to resolve this issue quickly. <br /> <br />. <br /> <br />Mayor Klinzing indicated that she will speak to Mr. K.rause and see what he believes is a <br />reasonable purchase price for Pinewood and will report back to the Council at the <br />December 19, 2005 Council meeting. <br /> <br />MOVED BYCOUNCILMEMBERFARBERAND SECONDED BY <br />COUNCILMEMBER MOTIN FOR THE CITY COUNCIL TO WITHDRAW <br />