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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 Haciendas 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.

Background
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.

Current Situation

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 Haciendas 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.”

Question
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?
Hmmmm.
I wonder if this will be discussed at tonight’s city council meeting.
Naw.

Posted by Steve on August 14, 2012 at 6:50 am | Permalink

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