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AGENDA ITEM 1A MEMORANDUM DATE: May 12, 2014 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Jill Hutmacher, Community Development Director SUBJECT: 1203 County Road E West Discussion located at 1203 County Road E West has withdrawn her purchase agreement. Although the broker is speaking to new potential users, no serious proposals for redevelopment or reuse seem imminent. Based on Economic Development Authority discussion on April 28, 2014, staff indicated to the broker that the City might be interested in purchasing the property if no viable private users come forward. The City, however, would need to have a better understanding of the demolition costs. Although a demolition contractor could give a very rough estimate of costs with a walk-thru, the real uncertainty with demolition is the amount of asbestos which can be hidden behind walls, under tiles, or in roofing materials. The City could obtain quotes for an Asbestos and Hazardous Materials (HazMat) Survey which would include taking samples and testing for asbestos. Hazardous materials such as fluorescent lights and thermostats which need to be removed prior to demolition would also be identified. The HazMat survey could be shared with demolition contractors, either formally through an RFP process for actual costs or informally to get an estimate of costs. Because the HazMat survey requires sampling and damage to building materials and surfaces, US Bank, the owner of the foreclosed property, is unwilling to allow the survey to proceed unless there is a general agreement on acquisition price and terms. City staff has communicated to the broker that the City would consider its total cost of acquisition to include demolition and remediation. The building is approximately 40,000 square feet on a 1.14-acre parcel (please see attached site map). Staff is requesting Council feedback regarding this property. 11 Page of