05-05-2014 Park Commission Packet

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T 2 The agreement is as follows: Total Price: $22,000 $ 9,000 Down $13,000 in three payments over• a three-year period 1st Year - $4,333 + 8% interest on $13,000 = $5,373 2nd Year - $4,333 + 8% on $8,667 - $5,026.36 3rd Year - $4,334 + 8% on $4,334 = $4,680 Total Cost =$22,000 + $2,080.08 interest = $24,080.08 The seller agrees to pay the 1973 taxes (due in 1970); we would possibly have to pay the 1974 taxes in 1975 and 1975 taxes in 1976. These would be expected to be similar to the 1973 tax level of $265.08, a relatively small amount and well within our capability. We received an appraisal from Mr. Martin Walsh, Village Assessor, on the fair value of the property. This appraisal is attached. As you will see, Mr. Walsh's appraised value of $2,500/acre and our agreed price of $2,522.94/acre are essentially the same and we believe, a fair value for both parties. The resources to handle the acquisition are as follows: Fees dedicated to park acquisition $ 4,083.50 Residual park funds similarly dedicated 9,700.00 Uncommitted 1974 acquisition funds (aoprox.) 6,000.00 TOTAL $18,783.50 As you can see, the 1974 down payment and the first year's payment can be readily handled with dedicated funds. We can therefore continue to plan to meet all normal obligations for 1974 and 1975 within our regular operating budget. The 1976 and '1977 payments, presuming our capital expenditure budget item remained at its current $10,000 year, is obviously within our capability. We would also expect that additional fees dedicated to acquisition will be paid in to the budget and may be used. Potential Uses As we have previously stated, we recognize the primary objective of the Orono Park Commission to be the acquisition of a suitable park. land within the city for future development. We •further recognize the need for a reasonably definitive plan for, the city of Orono for parks, including number, size, location and use.