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Both properties were discounted $2.50 per square foot due to the environmental issues contained on site. For Parcel 2, the purchase of the parcel was discounted $155,612 due to environmental concerns. Parcel8 was discounted $264,312 due to environmental concerns. Therefore, a the overall property purchase was discounted a total of $419,924 due to existing environmental conditions. The final agreed upon settlement for the purchase of both properties was $2,107,700 or $25,000 more than the combined appraisals. Staff and the City Attorney has estimated that if the City did not settle with Roseville Acquisitions and received the property thru the eminent domain action begun in March, it would have cost the City anywhere from $50,000 up to $142,000 l�us the final settlement amount determined by the court appointed commissioners. The breakdown is as follows: Attorneys fees....$7,500-30,000 (assumes two day hearing and possible appeal); Appraiser costs...$3,000-7,000(prep/testimony); Commissioner comp./landowner appraisal...$3,000-5,000; Interest due on award...$40,000-100,000(assumes 4% from date of taking to final resolution) Staff has not attempted to quantify the amount of an actual award by the commissioners as it would be speculative. However, staff's and the City Attorney's experience has shown that the final settlement is usually somewhere between the City's appraisal and the landowner's appraisal. Staff has included several documents related to the purchase of the properties including an executive summary of the appraisals as well as the pertinent section regarding the environmental contamination adjustment to the price. POLICY OBJECTNE The purchase of the property allows for the construction of infrastructure in the Twin Lakes redevelopment area. Twin Lakes has long been indentified in the Roseville Comprehensive Plan as in important redevelopment area for the City. BUDGET IMPLICATIONS The costs for the acquisition of 2690 Cleveland Ave. and 1947 County Road C is initially funded from the existing balances of Twin Lakes TIF District #17. As the property within Twin Lakes redevelops, property owners will pay their prorated share of the infrastructure costs as outlined in the Twin Lakes Infrastructure Study. STAFF RECOMMENDATION This item is being brought for discussion purposes at this time. REQUESTED COUNCIL ACTION None requested Prepared by: Patrick Trudgeon, Community Development Director (651) 792-7071 Attachments: A: Executed Purchase Agreement between City and Roseville Acquisitions B: Letters between the City of Roseville and Roseville Acquisitions regarding transaction C: Executive Summary of Appraisal for 2690 Cleveland Ave. (Parcel2) & 1947 County Road C (Parcel8) D: Page from Parcel2 appraisal regarding environmental contamination adjustment to value E: Page from Parcel8 appraisal regarding environmental contamination adjustment to value F: Memo from City Attorney regarding issues related to the purchase G: Staff Memo to City Council dated June 3, 2009 Page 2 of 2