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REQUEST FOR COUNCIL ACTION DATE: 10/11/93 ITEM! No. : Department Approval.: Manager Reviewed* Agenda section: Reports and Recommendations Item Description: Continuation of the option on Highways 3536 Residential Properties. Backcround For many years, the City has targeted the northwest quadrant of Highways 35W/36 as the location for a major office development. The City has taken steps to purchase a large portion of the site. The remaining thirteen residential properties have been under option by the city for the last two years at $5.25 and $5,50 per square foot per year respectivelye The city"s cost of those options is the value of the property taxes. At the council's direction, discussions have continued with the neigh- bors regarding a new option. The format for the property option being discussed includes an alternative that allows the residents to initiate the sale of their property at a price reflecting the current property appraisal with another alternative allowing the City to initiate the purchase at some future date, when development seems imminent, at a cost per square foot reflecting the commercial value of the property. While the concept of this approach has been reviewed by both the city and property owners, details have yet to be resolved. Policy ob 'ecti es Staff has continued to discuss this property option because of the importance of this quadrant for future economic development purposes. The assemblage of the property is an important issue in order to facilitate future development. Financial IMpl ications The cost of the options for annual property taxes equals approximately $25.F000a The cost of this option, plus the future cost of the acquisition of the parcels would be borne entirely by TIF. Monies for these purposes have been allocated in the TIF financial plan. COUNCIL ACTION REQUESTED Lotion to authorize staff to execute an extension of the existing options for a period of six (6) months, and authorizing staff to negotiate a new option agreement with the Highway 35W/36 res ident i a 1 property owners according to the terms and conditions previously discussed.