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ARROW.MEM <br /> Page 9 <br /> To: Joe Ferguson, Engineering <br /> From: John Weber / John Etter, Parks Planning <br /> Re: Arrowhead Park <br /> Date: <Date> <br /> This morning we met with Steve Lee and Jeff Elder regarding issues on the <br /> Arrowhead Park site. Steve Lee is anxious to reach formal agreement on these issues <br /> in a fairly short time frame - by June 15th. <br /> 1. In regards to the improvements to Arrowhead Street, a question came up about how <br /> the 100' portion of Arrowhead Street in front of tax lot 4001(the sewage lift station site) <br /> at the corner of Arrowhead and Irvington Drive could be assessed? An assumption at <br /> the meeting, was that this portion would be payed out of the sewer fund. Can you <br /> confirm this? <br /> 2. Our park site will have approx. 570' of frontage on Arrowhead and 220' of frontage <br /> on Merlot Ave. We will be expecting to pay for half street improvements for these <br /> frontages and will need to decide on the accounting procedure for how this will happen. <br /> Steve claims that he can save about 15 - 20% by building streets on a time and material <br /> basis. Would we accept a bill for our half of the street based on actual cost? There is a <br /> risk, of course, that something would come up to make it more expensive, and that a <br /> bid price, or at least a pre- negotiated price should be determined that would allow us to <br /> cover both the land and the assessment in a single purchase. He WiII build on a T & M <br /> basis. <br /> 3. For price of land, he says now that its risen to $32,000 per acre. This is based on a <br /> two factors: 1. His cost per acre for the land that remains developable (after backing <br /> out the Flat Creek acreage and the 15 foot strips, which will be deeded to the City); 2. <br /> The costs he has incurred in the process of getting to subdivision approval including <br /> filing fees, engineering costs, topo map preparation, etc., etc. It seems reasonable that <br /> his original purchase price per acre was based on the fact that there was some <br /> undevelopable land. Do the development costs serve to further increase the value? <br /> The answer is important to the fourth point below. <br /> If we had moved to purchase the land last fall when it was first offered, we could have <br /> gotten it for less per acre. Engineering costs beyond such a purchase that relate to the <br /> street would have been lumped into the total assessment. Our concern now is that he <br /> claims such costs have driven up the price per acre; therefore we want to make sure <br /> that we don't get billed again as a part of the street construction costs. <br /> 4. An appraisal will be needed before we can commit and close on the purchase. How <br /> fast can we get an appraisal and can we handle this "in- house "? Hopefully such an <br /> appraisal will support that we are paying fair market value, and that fair market value is <br /> about what he has invested to date. Since we cannot make a firm commitment to <br /> purchase without a supportive appraisal, this becomes the most critical issue in trying to <br /> meet Steve Lee's time schedule. He indicated that he needs an answer from us by <br /> June 15 on whether we intend to go through with the purchase. Assuming a positive <br />