Agenda - Council - 06/23/2009 - Laserfiche WebLink

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CASE # APPROVE PURCHASE AGREEMENT AND LOAN AGREEMENT FOR THE PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRIDOR (PRO SPORTING GOODS PARCEL) By: William K. Goodrich, City Attorney Background: As the Council is aware, the City has been negotiating with PSG, LLC for the acquisition of their parcel of land lying within the Highway 10 corridor Official Map area. The parcel is located adjacent to 6811 Highway 10 NW and is 1.65 acres in size. This is a vacant parcel. 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 is negotiating the purchase agreement on behalf of the City. The appraised value is $757,700.00 or approximately $10.56 /sq. ft. The final purchase price is subject to Metropolitan Council approval which is pending. 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 is $757,700.00, the total loan from the Metropolitan Council will be in excess of that amount in order to reimburse the City for its acquisition expenses. The Metropolitan Council's attorneys are now reviewing the Loan Agreement for final approval. We will have the Loan Agreement available for Council to review at the meeting. Enclosures: Map showing the parcel location Draft Purchase Agreement Recommendation: Enter into the Purchase Agreement and approve the Loan Agreement. Council Action: Motion to enter into a Purchase Agreement with PSG, LLC for the purchase of the parcel of land located adjacent to 6811 Highway 10 NW, Ramsey, Minnesota (PIN 34- 32- 25 -21- 0014), for a total purchase price of $757,700.00 which amount is to be funded by a Metropolitan Council RALF loan. This motion is contingent on formal approval by the Metropolitan Council approving the purchase agreement and the purchase price and upon City Attorney approval of the Purchase Agreement's legal terms upon final negotiation with the Land Owner. N Motion to authorize the City to enter into a Loan Agreement between the Metropolitan Council and the City of Ramsey For Protective Acquisition of Highway Right -of -Way for parcel located at 6811 Highway 10 NW (PIN 34- 32 -25 -21 -0014) in the City in an amount not to exceed $800,000.00. Reviewed by: City Attorney City Administrator CC: 06/23/09