4.2. ERMUSR 09-11-2012 - Laserfiche WebLink

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Elk Ri Munic a ties UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. — General Manager John Dietz — Chair Daryl Thompson — Vice Chair Al Nadeau — Trustee MEETING DATE: AGENDA ITEM NUMBER: Se tember 11, 2012 4.2 SUBJECT: Purchase of Property (Parcel ID #75- 411 -0210 BACKGROUND: The property at 1639 Main Street NW (Parcel ID# 45- 411 - 0210), north of ERMU's Field Services building, has been listed for sale. Because of this property's location, it would be desirable for the Utilities acquisition for future expansion, storage, or parking needs. At the August 2012 Utilities Commission meeting, the Commission authorized staff to negotiate the purchase of the property with final approval being awarded by the Utilities Commission. DISCUSSION: Staff has met with the Real Estate agent and inspected the home. Staff submitted an offer letter on August 24, 2012, for $134,900. This offer was accepted and a purchase agreement has been drafted. This property would be subject to property tax until it is used for a municipal function. This capital purchase was unbudgeted requires Commission approval for purchase based on policy criteria. As a result of above normal temperature for much of this year, utility sales are above budget for both the water and electric funds. This purchase can be made out of the unbudgeted margins. ACTION REQUESTED: Staff recommends the Utilities Commission authorize the purchase of 1639 Main Street NW (Parcel ID #75411- 0210). ATTACHMENTS: • Sherburne County, MN, Beacon Satellite Map of 1639 Main Street NW (Parcel ID#75- 441 -0210) • Sherburne County, MN, Beacon Property Summary for 1639 Main Street NW (Parcel ID #75- 441 -0210) • Purchase Agreement for 1639 Main Street NW (Parcel 113475-441-0210) • Elk River Municipal Utilities offer letter dated August 24, 2012 M Rellsble Public Power Provider Page 1 of 1 POIIEflEI ar NAN YUR� Pow. 1r To 5 , . �, N