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./j <br />Elk River .~ <br />Municipal Utilities ~ <br />13069 Orono Parkway C1~ phone: 763.441.2020 <br />Elk River, MN 55330 Fax: 763.441.8099 <br />July 5, 2006 <br />To: Elk River Municipal Utilities Commission <br />Terry Takle <br />John Dietz <br />Tames Tralle <br />From: Bryan Adams, P.E. <br />Subject: Property Purchase <br />At the March 14, 2006, Elk River Municipal Utilities Commission meeting, the possible <br />sale of the Briggs property was discussed. This property lies directly east of our power <br />plant and contains 6.28 acres with about 40% being in the flood zone. Staff was directed <br />to get a property appraisal. Ron Black secured an appraisal completed by Steven Smith. <br />The appraised value is $288,000. <br />To secure room for future facility expansion at our operation center, utility staff <br />recommends this property be purchased. City staff, particularly the planning department <br />does not concur. Their view is this area is a residential area, and although we have only <br />been there for approximately 60 years, this entire facility should be moved elsewhere to a <br />more suitable location. There will also be much resistance to allow some tree removal to <br />make room for future facilities. <br />The other complicating factor is finances. The Elk River Municipal Utilities is very <br />strapped for cash this year. This purchase may possibly incorporate delayed payment or <br />a stepped payment structure. <br />