Agenda - Council - 12/09/2008 - Laserfiche WebLink

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CASE # APPROVE PURCHASE AGREEMENT. AND LOAN AGREEMENT FOR THE PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRIDOR (GLINT A. WILSON PARCEL) By: William K. Goodrich, City Attorney Background: As the Council is aware, since 2005 the City has been negotiating with Clint A. Wilson (the "Land Owner") for the acquisition of his parcel of land lying within the Highway 10 corridor Official Map area: The parcel is located at 7665 Highway 10 NW and is approximately 93,654 square feet or 2.15 acres in size. The Anoka County tax ID parcel no. is 28-32-25-31-0005. The funds for the purchase are from a Metropolitan Council RALF loan program. The loan proceeds will be reimbursed to the Metropolitan Council by MnDot when MnDot has need for the parcel. Jodi Ruhle of .the Tinklenberg Group has negotiated the purchase :agreement on behalf of .the City. The negotiated amount and appraised value is $862,000.00 or $9:20/sq. foot. The Land Owner is requesting a closing as soon as possible BUT is requesting that he retain possession and occupancy of the Subject Property for 120 days after the closing, rent free. Staff recommends that the City require. rent to be paid in an amount of at least the amount of the Land Owner's current mortgage payment. Staff is attempting to verify that amount and will advise Council at the meeting. An escrow of sale proceeds of say $10,000.00 is also appropriate to insure the Land Owner vacates timely, pays the rent and removes all personal property from the site. Staff will review the terms and conditions of the purchase agreement with the Council at the Council meeting. The Met Council has approved an additional $38,000.00 payment to the Land Owner in the form of an administrative settlement. Therefore the total payment to the Land Owner would be $900,000.00. A Loan Agreement between the Metropolitan Council and the City must also be entered into. Staff will review the -terms and conditions of the Loan Agreement with the Council at the Council meeting. While the actual appraised value plus the administrative settlement is $900,000.00 paid to the Land Owner, the total Loan from the Metropolitan Council is $960,480.00. The additional $60,480.00 is intended to defray the City's administrative expenses and demolition costs in acquiring ,the Subject Property. See enclosed statement of costs. The Metropolitan Council's attorneys are now reviewing the Loan Agreement for final approval. The Land .Owner is eligible for Federal Relocation Benefits.. THIS EXPENSE MUST BE FUNDED. BY THE CITY and is eligible for reimbursement to the City when MNDot has need for the Subject Property. Dan Wilson of Wilson Development on behalf of the City, has estimated the relocation expense to be approximately $36,275.00 consisting of $7,750.00 for -the residential relocation, expenses and $28,525.00 for business restablishment, residential restablishment and moving of movable items such as vehicles. Under State law, the business restablishment has a maximum limit of $50,000.00. However, Dan Wilson sees little possibility that the Land Owner -245-