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Item 1.D.
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| City Council Regular | |
| Date: | 11/28/2022 |
| Title: | Purchase of 760 Lake Elmo Drive (Fire Station #8) |
| Presented by: | John Caterino, Facilities Superintendent |
| Department: | City Hall Administration |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends approval of the buy/sell agreement and removal of all contingencies to purchase the building located at 760 Lake Elmo Drive for $575,000.
At the 09/26/2022 Council Meeting, City Council approved the purchase of said property with contingencies; appraisal, and due diligence.
Appraisal, due diligence inspections for roof, asbestos and radon sampling were conducted and reports are attached.
At the 09/26/2022 Council Meeting, City Council approved the purchase of said property with contingencies; appraisal, and due diligence.
Appraisal, due diligence inspections for roof, asbestos and radon sampling were conducted and reports are attached.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Council directed staff to obtain property for a future eighth fire station located in the Heights. City staff worked with property broker NAI to locate appropriate properties, and they found that the owner of a former fire station located at 760 Lake Elmo Dr. was interested in selling the property. The fire department and facilities toured the building and determined it is in an advantageous location, and good condition, to serve again as a fire station. This station, according to the ESCI long-range master plan from 2018, is strategically located. ESCI advised that we build the next station in the Heights on Topaz and Hilltop, approximately five blocks from the desired location. Except for some renovation, this former fire station is ready for service and would be much less expensive than purchasing, developing, and building a new station.The Fire Department will present current and projected data on the advantages of this location in serving the Heights and Billings Community. This station could meet the immediate needs of housing the Mobile Response Teams that should be operational in December 2022.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve
FISCAL EFFECTS
The purchase price is $575,000, which will be paid for with Fire Department budget that was allocated for the purchase of land for Fire Station #8.
Purchase Price: $575,000
Due Diligence Cost: $8,872 (appraisal $4,500, asbestos and radon $3,572, and roof $800)
Remodel Costs: Estimated at $300,000
Estimated total: $883,872
The Fire Department has allocated approximately $2,000,000 in FY23 for a second Heights fire station.
Purchase Price: $575,000
Due Diligence Cost: $8,872 (appraisal $4,500, asbestos and radon $3,572, and roof $800)
Remodel Costs: Estimated at $300,000
Estimated total: $883,872
The Fire Department has allocated approximately $2,000,000 in FY23 for a second Heights fire station.
SUMMARY
Attached items include: roof inspection report, asbestos and radon sample report, appraisal, and signed buy/sell agreement.