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<br />COUNCIL BUSINESS <br /> <br />Case #1: <br /> <br />Confirm Direction, if any, Given in Closed Session regarding City of Ramsey <br />vs. Minnwest Bank Central Litigation and Ramsey Town Center Addition <br /> <br />City Attorney Goodrich stated that this special meeting was announced on Tuesday, March 10, <br />2009, at the regular City Council meeting and notices were posted beginning March 11, 2009. <br />He stated that the purpose of this meeting is to discuss and possibly settle the litigation in the <br />Anoka County District Courts of the City of Ramsey vs. Minnwest Bank Central, which revolves <br />around Ramsey Town Center Addition, of which the City Hall is part. He gave some history of <br />the Ramsey Town Center and its development agreement and the subsequent changes with the <br />developer passing away and the property going into foreclosure. He stated during the time that <br />these things occurred, the City found it necessary to make certain the Master Development <br />Agreement had priority over any other encumbrances, so it entered this litigation. He stated that <br />one of the complications of the litigation is that part of the land is abstract and part is Torrens <br />property. He stated that Minnwest counterclaimed against the City seeking a determination that <br />the first mortgage had priority over the Master Development Agreement. He stated that the City <br />believes it is close to having this matter settled and various documents will be reviewed with the <br />Council. He introduced Tom Bray of Briggs and Morgan who has been working with the City <br />on this matter to review the proposed Settlement Agreement. <br /> <br />Mr. Bray noted that he will review the: Settlement Agreement; Purchase Agreement; Consent to <br />Settlement Agreement and Release with the participating banks; and lastly a Release Agreement <br />for the Ramsey Town Center. He reviewed the details of the Settlement Agreement. <br /> <br />Councilmember Elvig asked Mr. Bray to express the time sensitivity related to this issue. <br /> <br />Mr. Bray stated that if the HRA acquires the property prior to June 30, 2009, they can file to <br />have the property exempt from taxes. He reviewed the details of the Purchase Agreement and <br />noted that the purchase price has been changed to $6.75 million, not $7 million, as is stated in the <br />document in front of the Council tonight. He stated that there are significant delinquent real <br />estate taxes and this agreement requires the Seller to pay those at closing, but the outstanding <br />assessments will be the City's responsibility. He noted that Section 20 will be entirely removed <br />from the Purchase Agreement. He reviewed the Release Agreements. <br /> <br />City Attorney Goodrich asked Mr. Bray to note the balance of the existing mortgage. <br /> <br />Mr. Bray stated that it is approximately $36 million with interest, but he doesn't know the exact <br />number. <br /> <br />Councilmember Elvig noted that he would like to see Mr. Lasher show and discuss what <br />i ; <br />properties are being discussed. i <br />:1 I <br />:j <br />Mr. Lasher stated that this is to purchase approximately 148 acres, 30 acres is parkland and the <br />rest is commercial and residentially zoned property. ;/ I <br /> <br />Special City Council Meeting /March 17,2009 <br />Page 2 of 6 <br />