Item Coversheet

3.B.


Shakopee Economic Development Authority
July 16, 2019

FROM: Michael Kerski, Planning & Development Director 
TO:President and Board Members
Subject:
Modification of Purchase Agreement for 116 Atwood Street     
Policy/Action Requested:
Approve Resolution No. E2019-009
Recommendation:
Approve Resolution No. 2019-009 Authorizing the Purchase of property located at 116 Atwood Street in the amount of $200,000 plus an additional $20,000 for relocation
Discussion:

The EDA previously approved a purchase agreement at $175,000 and $25,000 in relocation costs.  The original appraisal was $172,500.  Since more than six months have passed since the last agreement, the owner requested an updated appraisal.  The estimated value is now $206,000 based on the current market conditions.  The seller has since purchased a property in Shakopee. The seller has agreed at $200,000 and will be relocated out of the house by the end of August.

 

The adjacent house is under contract to the EDA for $250,000.

 

Gaughan Companies is in agreement with the increase.

Budget Impact:
ATTACHMENTS:
Description
Resolution
Contract