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El , Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 3.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business August 25, 2014 Jeremy Barnhart,Deputy Director, COD <br /> Item Description Reviewed by <br /> Receive land donation from Tom Hartman,Lots 1 Tim Simon, Finance Director <br /> and 2, Block 1, Fox Haven Commercial Reviewed by <br /> Cal Portner, City Administrator <br /> Action Requested <br /> 1. Accept, by resolution, the donation of land from Tom Hartman: Lots 1 and 2,Block 1, Fox <br /> Haven Commercial. <br /> 2. Approve, by motion, the budget amendment for$83,000 to the 2014 budget. <br /> Background/Discussion <br /> The city has been approached by the property owner of two 1.5 acre parcels immediately west of <br /> Westbound liquor. The property owner wishes to donate the parcels to the EDA in exchange for paying <br /> the outstanding property taxes,which have accumulated to $79,387.77. The county estimates the taxable <br /> market value of the two parcels to be $261,400. In addition to the payment of the property taxes, there <br /> are the typical due diligence costs,including Phase 1 Environmental Site Assessment ($3,400) and title <br /> commitment costs ($125) <br /> Staff has identified three options: <br /> 1. Acquire the parcels for$79,387.77,plus due diligence costs. This gives the EDA options in <br /> terms of encouraging commercial growth in this portion of the city. With ownership,we are able to <br /> control the pace of a sale and the cost of the land,which are both powerful motivators for new <br /> businesses. <br /> 2. Not acquire the property,but acquire it when (or if) the parcels are involved in the tax forfeiture <br /> process. The challenge with this option is that there are a number of conditions imposed on <br /> properties acquired through the tax forfeiture process. The city could not use the property to <br /> develop it for commercial purposes without paying the fair market value, or about$261,000. <br /> 3. Do nothing. Do not acquire the property now or when it becomes available through the tax <br /> forfeiture process. <br /> While the acquisition cost is substantially less than the estimated market value, the EDA could expect to <br /> hold the property for some time, as the commercial climate in this area is less robust than in other areas, <br /> which is in part why the property owner wishes to donate the land. The $82,912.77 is not anticipated to <br /> negatively impact other EDA projects or goals. <br /> I P O W E R E I 11 <br /> Template Updated 4/14 NATUR <br />