Agenda - Council - 05/12/2009 - Laserfiche WebLink

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CASE # APPROVE PURCHASE 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 Ruhie 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. Attached is a draft of the proposed Purchase Agreement. On Apri128, 2009, at a closed meeting, the City Council discussed an unresolved issue relating to the Land Owner's relocation of his business in the City's official mapped area on Highway.l0. The Land Owner has now agreed in principal to the concept that he will not relocate his business in the City's official mapped area on Highway 10. However, the exact Purchase Agreement language has not been agreed upon at this writing. If this language is agreed upon per the City Council's closed meeting directive on Apri128, 2009, there will need to be no further discussion of this case. However, if the language is not available, this consent case will be placed on the regular agenda for City Council discussion. Since the approval of the Loan Agreement on December 9, 2009 by the City Council, the City's acquisition expenses have increased mainly as a result of environmental investigations. We are. therefore asking to increase this amount from $60,480.00 to not to exceed $100,000.00. Recommendation: To enter into a revised Purchase Agreement pursuant to the terms directed by the City Council on April 28, 2009 and to increase the Metropolitan. Council's Loan Agreement to an amount not to exceed $1,000,000.00 from the original amount of $960,480.00 in order to reflect the increase in the City's acquisition expenses. Funding Source: The appraised value of $862,000.00, the administrative settlement of $38,000.00 and 'the City's anticipated acquisition expenses of $100,000.00 are all funded by the RALF Loan. THE RELOCATION EXPENSE OF APPROXIMATELY $36,275.00 WILL NEED TO BE PAID BY A CITY INTERNAL LOAN FROM THE PUBLIC IMPROVEMENT REVOLVING FUND. -13-