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<br /> Mr. Glen Olsen <br /> Mr. Thomas Braman <br /> April 24, 1990 <br /> . Page Two <br /> 2. While the property was purchased five years ago, and <br /> therefore, undoubtedly carries a market value higher than <br /> the actual purchase price, the city has not applied an <br /> inflation figure to determine current market value. The <br /> market value of the proposed development was derived by <br /> combining the yalue of parcel 1 ($700,000) with one-third <br /> of the value of parcel 2 ($163,000) , due to the fact that <br /> approximately 1.0 acre from parcel 2 has been combined with <br /> parcel 1 (5.27 total acres) for the purposes of the Group <br /> Health facility. The total market value for combined <br /> parcel of 5.27 acres is estimated at $863,000. <br /> 3 . The City's offer of a 10% cash dedication requirement <br /> ($86,300) is less than the 15% level authorized by existing <br /> ordinance. However, the 10% requirement more accurately <br /> reflects prior park dedications negotiated on similar <br /> properties (including a $52,100 dedication on 4.57 acres in <br /> 1986 for the Northwoods Office Complex), and a recognition <br /> that a portion of the development will be utilized for water <br /> drainage purposes. <br /> . 4. The Council does not agree, nor are we authorized by City <br /> ordinance, to base the park dedication fee on a square <br /> footage of developed property basis, as proposed in your <br /> memorandum. The undeveloped value of the land, irregardless <br /> . , of the facility to be developed, is the principal <br /> t; determinent in the City's calculation. <br /> Please advise me as to your decision regarding this proposal. <br /> The City appreciates the good working relationship which we have <br /> experienced with opus, and look forward to the addition of Group <br /> Health as a new corporate citizen in Arden Hills. <br /> Sincerely, <br /> Thomas A. Mahowald <br /> city Council <br /> TAM:madlr <br /> . <br />