CCP 08-09-1999 - Laserfiche WebLink

Home Browse Search

,r e ARDEN HILLS EDA - MARCH 8. 1999 DRAFT 3 subject to non-substantial changes being approved by the City Attorney and City AdrninistratorlEDA Secretary; and authorize the President and Secretary to execute all necessary documenlation; subject to conditions.President Probst confirmed that the property owner has until Wednesday, March 10, 1999 to sell the black dirt on the property, or find other means to dispose of it. Assuming the sale closes on March 10, 1999, there would be 30 days for the City to negotiate an agreement on the cost of the dirt. If the agreement is not made within the 30 days, the agreement would go to arbilration and both parties would be allowed to present their cases. Mr. Ringwald stated that lhis was correct. Commissioner Larson expressed his concern that the property owner would have no incentive to negotiate the cost of the dirt prior to the 30 days. The property owner may decide to wait until arbitration as this could result in the proposed costs being split down the middle and the City could end up paying substantially more than the estimated cost. Mr. Ringwald stated that this would be no different than the process used in a condemnation. The two parties would have the same arguments and the Judge would most likely make the same decision to split the cost down the middle. The City can try for the lowest price possible, however, in the end, the result traditionally is to take the two appraisals and divide them by two, assuming the fair market value is somewhere in between. Mr. Ringwald stated that this is not necessarily the fairest method for the taxpayer, however, the entire process is not necessarily fair e to the property owner either. Commissioner Larson asked how much dirt the Staff is estimating is on the land. Mr. Ringwald slated that the Staffis estimating between 25,000 to 30,000 cubic yards. Commissioner Larson pointed oul that, at $2.00 per cubic yard, this would amount to approximately $60,000, as opposed to the $210,000 proposed by the property owner. e Mr. Ringwald agreed and noted lhal Staff had decided to first focus on the quantity of dirt, Ihen attempt to determine a price. The quantity of dirt will hopefully be an easy issue to resolve as it is a finite piece of information. President Probst concurred that an agreement will be made regarding the quantity of dirt as the property owner can nol argue with the facts of the survey. With regard to the value of the dirt, presumably the Staff has done its homework to determine the market value. He noted that the price presented by Mr. Indykiewicz is a delivered price and includes costs that do not apply in this case. President Probst noted that, if the EDA approves the purchase agreement, the City is committing itselfto accepting any decision made if the agreement goes to arbitration. Mr. Ringwald slated this is correct for both the City and the property owners. Commissioner Larson asked if it had been lhe property owner who had sought the provision to retain the ability to sell the dirt prior to closing. Mr. Ringwald stated that it had been a combined agreement between the City and the property owner. The City would prefer for the property owner to sell or dispose of the dirt and remove this issue from the purchase agreement. Mr. Fritsinger noted that this discussion had taken place several weeks ago and, at this time, no dirt