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HomeMy WebLinkAboutIV.B - Eljin Property Offer 1498 Riverbluff Dr. Hastings, MN 55033 6/23/2020 HEDRA City of Hastings | City Hall 101 4th Street E | Hastings, MN 55033 Attn: Community Development Director Dear Mr. Hinzman: Eljin Properties, LLC (ELJIN) is a local real estate investment company. We focus on purchasing and rehabilitating distressed properties, and we have been in business since 2011. We are interested in purchasing the HEDRA owned lot located at the corner of Ramsey St. and 3rd St. East. We presented a similar offer in the past, but it was lacking many of the enclosed details. This lot is appealing to us mainly because we own the two adjacent properties. The duplex located to the west of the empty lot lacks green space, and our intent is to allow tenants to utilize the empty lot for a small garden and outdoor seating. ELJIN will also be adding some simple landscaping features such as mulched pollinator garden, and possibly a small-scale sculpture. Our goal for the project would be to beautify the space while creating a functional outdoor space for our tenants. Our offer for this property is $3000. This offer is based on several factors. First and foremost is our belief that this represents a value above fair market, given the size and constrictions of the lot. The attached comparable sale of 107 21st. St W indicates a square foot value of $.46/sf, with a commensurate lot value of $1,484.42 based on the lot size of 3,227 square feet. This opinion was confirmed by a commercial appraiser, who reviewed the details of this property when he was performing a paid appraisal of 214/220 Ramsey Street (property directly to the north) in 2015. We recognize that this offer is less than HEDRA’s investment in this property. Our offer is based on what we feel to be above fair market value, as well as our belief that our improvements to this property will benefit both ELJIN and the city. The landscaping improvements will beautify a property that has remained a bland patch of grass for many years, creating what we believe is a win-win for both ELJIN and the City of Hastings. Additionally, adding non-taxable properties to the tax roll, and reducing city maintenance costs, are also benefits to the city. 1498 Riverbluff Dr. Hastings, MN 55033 Lastly, we also run our main business (National Facility Solutions, LLC) as a tenant in 220 Ramsey St. Based on recent growth, we have started to consider an addition and renovation of that building in order to attract and accommodate additional staff and improve the image of the company. Acquisition of this land would put us in a position to move forward with that plan if/when the timing is good for the business. I am happy to answer any questions about this proposal, via phone, email or in person at the next HEDRA meeting. Respectfully, Scott Sinclair Eljin Properties, LLC scott.sinclair@natfas.com (718) 314-6599 1498 Riverbluff Dr. Hastings, MN 55033 Aerial image of adjacent properties HEDRA owned lot 1498 Riverbluff Dr. Hastings, MN 55033 Pollinator Garden Raised garden beds 6/16/2015 107 21st Street W, Hastings, MN | MLS 4555676 | Listing Information http://www.edinarealty.com/landlots-for-sale/107-21st-Street-W-Hastings-MN-55033-140890144/print 1/8 customercareteam@edinarealty.com Email Customer Care or Call (952) 928­5563 (952) 928­5563 My Rating My Notes Price:  $10,000 107 21st Street W  Hastings, MN 55033 County: Dakota MLS#: 4555676 Status: Pending Sale 6/16/2015 107 21st Street W, Hastings, MN | MLS 4555676 | Listing Information http://www.edinarealty.com/landlots-for-sale/107-21st-Street-W-Hastings-MN-55033-140890144/print 2/8 Description for 107 21st Street W Hastings, MN 55033 Vacant land. No appointment required. Previous home was torn down. 6/16/2015 107 21st Street W, Hastings, MN | MLS 4555676 | Listing Information http://www.edinarealty.com/landlots-for-sale/107-21st-Street-W-Hastings-MN-55033-140890144/print 3/8