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<br />M Martinsville <br /> <br />Meeting Date: <br />Item No: <br />Department: <br />Issue: <br /> <br />Summary: <br /> <br />City Council <br />Agenda Swnmary <br /> <br />August 9, 2005 <br />3. <br /> <br />Finance <br /> <br />Discussion of the disposition of City-owned real estate <br />consisting of 238.368 acres of land near Reed Creek off of <br />North Daniels Creek Road in Henry County, Virginia. <br /> <br />In 1982 the City purchased 238.368 acres of land near Reed Creek off of North <br />Daniels Creek Rd in Henry County for $125,000. The land was to be used for a <br />working prison farm. Shortly after the purchase, changes in state law effectively <br />ended the operation of all prison farms in the Commonwealth. <br /> <br />Since 1996 the City has been leasing this land for use as grazing. The current <br />lease will expire on June 30, 2006. The City has received $15,848 in the 10 years <br />in lease payments. The payments have been slowly increasing with the last lease <br />payment being $1,764. This represents a 1.4% annual return on our initial <br />investment. The current assessed value of the property is $201,700. Assuming <br />we could sell the property for that amount our current return on this asset is <br />.87%. <br /> <br />City staff can see no useful purpose for this property in the near future. As such it <br />is recommended the City divest itself of this asset. <br /> <br />Attachments: <br /> <br />Lease Agreement letter <br />Property Assessment <br />Map <br /> <br />Recommendations: Place on next agenda <br />