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CASE # ~ ~ <br />APPROVE PURCHASE AGREEMENT AND LOAN AGREEMENT FOR THE <br />PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRIDOR <br />(Inter City Oil Co ("ICO") PARCEL) <br />By: William K. Goodrich, City Attorney <br />Background: <br />As the Council is aware, the City has been negotiating with ICO for the acquisition of their parcel of <br />land lying within the Highway 10 Corridor Official Map area. The parcel is located at 6021 <br />Highway 10 NW and is 2.03 acres (88,450 sq. ft.) in size. The property was formerly occupied by <br />an ICO automobile station and is now vacant. Because the Subject Property was formerly a gas <br />station, petroleum storage tanks and related equipment were located on the site. <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 <br />the parcel. Jodi Ruehle of The Tinklenberg Group has negotiated the purchase agreement on behalf <br />of the City.. The negotiated amount appraised value is $879,200.00, or approximately $9.94/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 a future Council <br />meeting. Terms and conditions of the Loan Agreement will need to be established upon completion <br />of the necessary environmental reviews. At this time, it appears that a Phase II environmental <br />review will be required by MnDOT. While the actual appraised value is $879,200.00, the total loan <br />from the Metropolitan Council will be in excess of that amount in order to reimburse the City for its <br />acquisition expenses. <br />Recommendation: <br />Staff recommends entering into the purchase agreement. <br />Council Action: <br />Motion to enter into a Purchase Agreement with Inter City Oil Co. for purchase of the parcel of land <br />located at 6021 Highway 10 NW, Ramsey, Minnesota (PIN 35-32-25-31-0012), for a total purchase <br />price of $879,200.00 which amount is to be funded by a Metropolitan Council RALF loan. This <br />motion is contingent on formal approval by the Metropolitan Council approving the Purchase <br />Agreement, entering into a Loan Agreement with the Metropolitan Council and upon City Attorney <br />approval of the Purchase Agreement's legal terms, including environmental issues upon final <br />negotiation with the parcel owner. <br />Reviewed by: <br />City Attorney <br />City Administrator <br />Enclosures: <br />Map showing the parcel location <br />Loan Agreement <br />CC: 02/09/10 <br />