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<br />MEMO <br /> <br />DATE February 17,2000 <br /> <br />TO Honorable Mayor and Council <br /> <br />FROM: Jim March <br /> <br />RE : Eagle Trucking <br /> <br />............................................................................ <br /> <br />Included in your packet is a memo from City Attorney Jim Hoeft. Jim Hoeft is on <br />vacation and will not be in attendance at the Council meeting. Mr. Hoeft indicated that <br />his assistant will provide a final purchase agreement that can be presented any time next <br />week after the questions in his memo are decided upon. Paul Palzer and I have walked <br />through the property with Mr. Hubers. The personal property that is remaining with the <br />building will be noted in the exhibit section of the purchase agreement. Mr. Hubers made <br />it clear that he expects a total offer of$375,000 for his building and personal property. <br />Based on the property staying with the building and the result of the appraisal on the <br />property, I think Mr. Hubers asking price is relatively fair. <br /> <br />I have spoke to Steve McDonald (Abdo, Abdo, Eick and Meyers) in regards to my idea of <br />just paying for the building outright and not financing the purchase. Mr. McDonald <br />agreed that the City could comfortably purchase the building with the current general <br />fund balance that is being carried. Typically, a 40 or 50% fund balance of estimated <br />annual expenditures is needed for business cashflow purposes. In 1999, the City had <br />approximately a 95% ratio between the general fund balance and estimated expenditures. <br /> <br />Mr. Hubers indicated that he would be willing to set a closing date for mid-August 2000. <br />I have a full copy of the Remedial Investigation Report from Braun Intertec in relation to <br />the tank removal on the property. Braun is recommending site closure to the MPCA. <br />The MPCA apparently has never overturned a recommendation for site closure. This <br />page of the report is included in your packet. According to Jim Hoeft, the language in the <br />purchase agreement would adequately protect the City from environmental issues. <br /> <br />If anyone has any questions on this issue, please call me. I expect that Council will be <br />discussing an offer on the property at the meeting. <br />