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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—MAY 12, 2014 2 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. She reported that a rough estimate to demolish the building is $95,000; however this amount does not include any HazMat cleanup, so total demolition costs could run upwards of$150,000. Community Development Director Hutmacher stated that 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. It was noted that the building is approximately 40,000 square feet on a 1.14-acre parcel. Staff requested Council feedback regarding this property. Councilmember Holmes did not support the City buying this property. Councilmember McClung thanked staff for the information on this property. He expressed concern with the uncertainty of the expense of demolishing the building. He believed it would be a positive thing to have this building removed and the site redeveloped, and he would like to see the Council begin working towards its vision for the B-2 district. Councilmember Werner stated that the HazMat unknowns made him leery of purchasing the property. Mayor Grant asked if the City could pursue grants to assist in defraying the costs of purchasing and demolishing this property. Community Development Director Hutmacher stated that she did not believe that there were grant funds available for this type of property. She reported that the market price for the property was $450,000. She discussed what the City might recoup if the building was demolished and the site was cleaned, but she noted it may take several years to clean up and sell. In the end, the property would be a net loss, but the blight would be removed, and the sidewalk issue could be addressed. City Administrator Klaers commented that the lot was 1.14 acres in size and had a County assessed value of$397,000. Mayor Grant questioned what the property could sell for.after demolition and cleanup. Community Development Director Hutmacher discussed the range of the potential sales price. She explained that the City always has the option of putting in an offer on the property for less than the market price. Councilmember Holden was willing to spend money on the demolition of this property if someone was willing to purchase the site. This would allow the City to complete a sidewalk.