4.1. SR 03-12-2001 - Laserfiche WebLink

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TO: FROM: DATE: SUBJECT: Item # 4. I. MEMORANDUM Mayor and City Council Pat Klaers, City Administrator March 12, 200 I Review Use of Funds from Holt/Jackson Land Transaction The city owned Holt and Jackson property has been sold for a commercial development project. After closing costs the city received $348,085. It was a very long and difficult process to assemble this property with clear title. Part of the side was Right-of-Way and part of the property was owned by the Elk River Associated Investors, Inc. In exchange for this Association deeding the property to the city, I indicated in a November 30, 1995, letter to them that (if the site sells) I would recommend to the Coundl that 50% of the revenues be dedicated toward Business Park or Industrial Park development. Assembling, platting, and getting clear title to this property took years and the efforts of the city was contested by various groups throughout the process. Ultimately, the city did get clear title (Order and Decree of Registration) in order to sell the property. Prior to selling the site, the city also had to provide sewer and water and this involved additional expenses as the utlifies from the residential development around the cemetery did not get to the site and the water line from the northern part of Elk Park Center had not been looped through this area. In total, the city has somewhere in the neighborhood of $45-50,000 invested in assembling this property and providing it with full utilities. Furthermore, on June 14, 1999, the City Council purchased an Ice Resurfacer for the arena. The cost was $82,546 and the motion stated that money from the Holt and Jackson Avenue site be used to reimburse the reserve fund which originally financed this purchase.