11.06 - Library Building Acquistion

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LIBRARY PURCHASE INFORMATION Statement: The Library Board would like to purchase the building known as "Little Pine Plaza." on County Highway 112 (Old Highway 371) in Pequot Lakes. At present, the building has four individual units (5760 sq, ft, total).. The building, built in 2001, is now in foreclosure. Is scheduled to go to a Sheriff Sale on June 3, 2009. Purchase prior to June 1 prevents increase in taxes & penalties. July 1 is deadline from removal from tax roll. The building has been appraised at $529,200 for taxes payable in 2008. (Commercial tax values in Pequot Lakes remained the same for 2009.) To rehab the building for library usage would cost approximately $10,000 at the most. The Library Board has researched expansion into the back room of the current library with a Kuepers design and the cost estimate is $269,670. Present library space (1,700 sq. ft.) and the built out space of 1,000 plus a meeting room on the new second floor would actually be less space at more cost than the proposed purchase. Lakes State Bank and the holder of a second mortgage are willing to work with the city and the library to make this purchase work. They feel this building would benefit the community as a library. Money needed: $90,000 to Lakes State Bank Crosslake $50,000 to Crow Wing County for back taxes $50,000 to holder of second mortgage (which is actually $250,000) Total needed: $190,000 At this point, the Library Board has developed the following ideas for raising money: 1. Someone would donate $190,000 to the library for the purchase of the building 2. A "White Knight" would purchase the building and would resell it to the library for cost as soon as the library was able to raise the funds. 3. Locate four people who would each donate $50,000 toward the purchase of the building or 20 people who would each donate $10,000 (or a combination of each). Finally, the Library is a Department of the City of Pequot Lakes. While not a 5016 (government is not allowed to be a 5016), donations made to the library by a person or Foundation are fully tax deductible. The Library Board President is John Longnecker, 218 - 5434391, and he would be willing to meet should you have questions. 1%, (over)