5.2. SR 01-22-2002 - Laserfiche WebLink

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