Minutes - Council - 01/08/2008 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Strommen, Jeffrey, Dehen, and Elvig. Voting No: Councilmember Look. Absent: Councilmember Olson. City Attorney Goodrich stated that a possible Purchase Agreement for the Bury and Carlson parcel was also discussed, but no conclusive action was taken. Case #11: Approve Purchase Agreement Amendment and Loan Agreement Amendment for the Purchase of Property Located in the Highway 10 Corridor City Attorney Goodrich reviewed the history of this parcel and noted that the parcel was appraised at $1,160,000, but there is a loan agreement with the RALF program through Metropolitan Council for $1,229,000 and the extra will help defray acquisition costs and relocation expenses. He stated that there are 2 tenants on the property and he expects the relocation costs to be somewhere between $45,000 and $65,000. He stated that when MnDOT has the need for this land, they will pay back the City for this expense. Councilmember Dehen asked if this area had been identified as a blighted area. Mayor Gamec stated that this is an area that the City has given priority to. Councilmember Strommen stated that the City gave priority to the properties in front ofthe RTC. Councilmember Dehen stated that he does not understand why the City should pay to have vehicles moved that are not running since this is a violation of City Code. City Attorney Goodrich stated that because this is a sales lot, he assumes that most of the vehicles are drivable, but noted that he knows there are some trucks that will need to be loaded onto a flatbed truck to be taken off of the site. He stated that he discussed this situation with Dan Wilson today and confirmed that, by law, the City needs to pay relocation expenses, whether they are junk vehicles or not. Councilmember Look asked about the terms of the RALF loan from the Metropolitan Council. City Attorney Goodrich stated that there is no interest and no payments required unless MnDOT abandons the project. He stated that if they do abandon it, the City would be required to sell the property and pay back the proceeds. Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to approve the purchase agreement in order to change the closing date, which purchase agreement is with Douglas and Julieann Hills for the purchase of the parcel of land located at 7443/7445 Highway 10 NW, Ramsey, Minnesota, for a total purchase price of $1,160,000 which amount is to be funded by Metropolitan Council RALF loan, AND, to authorize payment of a maximum of $65,000.00 for relocation expenses required for relocating the two tenant businesses on the property, AND, to authorize the City to enter into the Amended Loan Agreement between the Metropolitan Council and the City of Ramsey for Protective Acquisition of Highway Right-of-Way for the Douglas City Council / January 8, 2008 Page 21 of23