Agenda - Council - 11/27/2007 - Laserfiche WebLink

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CASE # S CONSIDER THE SALE OF LOT, 1, BLOCK 4, GATEWAY NORTH INDUSTRIAL PARK PLAT 2 TO ACE SOLID WASTE By: Sean Sullivan, Economic Development Coordinator Background: At the September 25th Council meeting the City Council directed Staff to get an appraisal and to bring the sale of Lot 1, Block 4, Gateway North Industrial Park Plat 2 to the EDA for review. At the October 18, 2007 EDA meeting a recommendation was made by the EDA to sell the aforementioned property to ACE Solid Waste. The purchase price of $286,000 exceeded the appraised value and was deemed a fair offer by the EDA. It should be noted that the original purchase price for this property by the City was $315,000. Included in that purchase price was a building, an in ground scale, and 33 feet of Right of way that is not being sold to ACE. The sales price of $286,000 is consistent with appraised values in the industrial area near this parcel. Ace Solid Waste anticipates expansion of its existing facility to include either a 12 square foot transfer station or a 12,000 square foot shop. At the October 23 City Council Meeting the City Council made a counteroffer of $310,000 for Lot 1, Block 4, Gateway North Industrial Park Plat 2. Ace Solid Waste has considered the counteroffer but still feels that the original offer of $286,000 is fair. Ace Solid Waste is formally requesting that City Council authorize entering. into a purchase agreement with Ace Solid Waste and to convey the aforementioned land according to the attached terms and conditions. Staff and the Ramsey EDA also recommend conveying site to Ace Solid Waste according to the terms and conditions of the attached purchase agreement. Funding Source: Not Applicable. The City purchased the property for $315,000 in December 2005. The City was awarded a grant from the Tax Base Revitalization Account (TBRA) in 2006 to pay for the contamination clean -up on the site. The City ordered an appraisal for $1,800 in 2007 which will be funded from Tax Increment Financing (TIF) District No. 2 Recommendation: Staff and the Ramsey EDA recommend that City Council enter into the attached purchase agreement and to sell Lot 4, Block 1, Gateway North Industrial Park Plat 2 to ACE Solid Waste. Council Action: Motion for City to Authorize the City Council execute the attached purchase agreement and to sell Lot 4, Block 1, Gateway North Industrial Park Plat 2 to ACE Solid Waste. Attachments: Purchase Agreement Draft copy of 10/18/07 minutes Ace Solid Waste letter dated 11/19/07 Reviewed by: j c City Administrator , L� CC: 11.27.07 _237_