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MEMO <br /> DATE : February 17, 2000 <br /> TO : Honorable Mayor and Council <br /> FROM : Jim March <br /> RE : Eagle Trucking <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 /> 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 /> 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 dim Hoeft, the language in the <br /> purchase agreement would adequately protect the City from environmental issues. <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 />