August 14, 2012
Yelm City Council to buy property tonight
Shelly Badger, City Administrator recommends the Yelm City Council tonight:
"To approve the Real Estate Purchase and Sale Agreement between the City of Yelm and Reichel Hacienda’s LLC for property located at 205 and 207 Second St. in the
amount of $150,000, with expenditures authorized from Fund 118 – Park Fee-in-Lieu of fund and Fund 104 – Cumulative Reserve.
The City has desired to obtain ownership of the parcel known as 205 and 207 Second Street SE, but past circumstances and timing have not been conducive to a purchase.
City ownership of this property adjacent to Yelm City Park is advantageous to future master planning and renewal of the park. Mayor Harding and staff have negotiated a Purchase and Sale Agreement with Reichel Hacienda’s LLC as follows:
• Purchase price - $150,000. $110,000 cash, $40,000 financed over 5 years at 4% interest.
• Closing date – November 1, 2012.
Funding for the transaction:
• Fund 118 – Park Fee-in-Lieu of fund. The current fund balance ($108,116.61) will be used towards the cash payment and the fund closed. The balance of the cash payment and closing costs will come from Fund 104 – Cumulative Reserve.
• Fund 104 – Cumulative Reserve. Monthly payments for the financed portion of the PSA will come from this fund."
Will this expenditure totally deplete the $108,116.61 "Park Fee-in-Lieu of fund" current balance?
What impact will this depletion have on the future of this fund?
I wonder if this will be discussed at tonight's city council meeting.