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CASE # ~ Q <br />APPROVE PURCHASE AGREEMENT AND <br />LOAN AGREEMENT FOR THE <br />PURCHASE OF PROPERTY LOCATED IN THE <br />HIGHWAY 10 CORRIDOR <br />(HOLIDAY STATIONSTORES, INC. PARCEL) <br />By: William K. Goodrich, City Attorney <br />Background: <br />As the Council is aware, -the City has been negotiating with Holiday Stationstores, Inc. for the <br />.acquisition of their parcel: of land lying within the Highway 10 corridor Official Map area. The <br />parcel is located at 7157.Highway 10 NW and is two acres in size. The properly was formerly <br />occupied by a Holidaystation Store and is now.vacant. Because the Subject Property was formerly <br />a gas .station, petroleum storage tanks and related equipment were located on the site. Holiday is <br />asking for certain indemnifications relating to environmental issues and an indefinite term access <br />agreement. across the Subject Property to carry on the necessary remediation of the Subject <br />Property.. In addition, Holiday is placing a restrictive covenant on the Subject Properly prohibiting <br />its future use by any retail sale of gasoline, diesel, and other motor fuel or for any type of residential <br />use. Therefore, the Purchase Agreement has been .referred to MNDot for their review and <br />concurrence of these issues. <br />The funds for the purchase are from a Metropolitan Council RALF loan program. The loan <br />proceeds will. be reimbursed to the Metropolitan Council by MnDot when MnDot; has need for the <br />parcel. Jodi Ruhle of the Tinklenberg Group has negotiated the purchase agreement on behalf of the <br />City. The negotiated amount appraised value is $860,000.00 or approximately $9.87/sq. ft. <br />A Loan Agreement between the Metropolitan Council and the City must also be entered into. Staff <br />will review the terms and conditions of the Loan Agreement with the Council at the Council <br />meeting. While -the actual appraised value is $860,000.00, the total loan from the Metropolitan <br />Council will be in excess of that amount in order to reimburse the City for its acquisition expenses. <br />See enclosed statement of costs. This amount is $68,350.00. The Metropolitan Council's attorneys <br />are now reviewing the Loan Agreement for final approval. We will have the Loan.Agreement <br />available for Council to review at the meeting. <br />Enclosure: <br />Map showing the parcel location <br />Loan Agreement <br />Acquisition of Statement of Costs <br />Recommendation: <br />Enter into the purchase agreement and approve the Loan Agreement. <br />-235- <br />