CCP 10-18-2004 - Laserfiche WebLink

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. . . ~ '1\~ HILLS MEMORANDUM DATE: October 14,2004 Agenda Item 2.D TO: Mayor and City Council FROM: Scott Clark, Community Development Director SUBJECT: Review of Old City Hall Purchase Offer DISCUSSION Royal Oaks Construction has made an offer to the City of up to $1,000,000 for the old City Hall site (the proposal at hand is to pay $25.00 per square foot of office space that can be constructed). This amount equals $3.80 per square foot based on approximately six acres of developable property. The proposal is to construct three unit office condominiums ranging from 4,500 to 6,500 sq. ft., totaling in aggregate 40,000 sq. ft. Both the offer letter, dated October 11, 2004, and a sample building plan are attached with this memorandum. The questions for the Council are: I) Is the overall use acceptable to the Council? 2) Does the Council want a formal appraisal done on the property? 3) Should staff initiate the process which will include doing a Phase I environmental analysis on the property (estimated cost is up to$l 0,000) which would include a survey of the public works building for materials that may have to be disposed of separate from the main demolition. 4) What site considerations should any plan reflect? There will be a number of issues that will still need to be negotiated including building demolition costs, site layout, platting, access, phasing, etc. REOUESTED ACTION Provide direction to staff regarding how to proceed with the offer. Based on Council's direction, staff would start a more formal negotiation process which should lead to a purchase agreement for formal consideration. e \\Earth\PlanninglMisc Filcs\Indy Property\lO-18-04 Work Session.doc