Agenda - Council - 03/09/2010 - Laserfiche WebLink

Home

Councilmember Look stated this is not spending "Ramsey money" but is still public money and the City is the responsible agency to assure the dollars are spent appropriately. He stated he has raised this question numerous times and now that values are substantially lower, he questions it again. Councilmember Wise noted the County sets an assessed value and these properties are being taxed at close to those values. Councilmember Dehen stated the appraisals always seem high based on what you are getting for your dollar. In this economy, he felt the deals should be better and asked whether it was time to revisit a new consultant and appraiser, and perhaps negotiate the sale in- house. Councilmember Dehen stated if the City has to pay this price, it should include demolition to get a better value for taxpayers. City Administrator Ulrich stated the City's attorney is able to negotiate the land sales, noting the costs are reimbursable through RALF funds. City Attorney Goodrich stated they can do negotiation but the City still needs the appraisal. In addition, he was unsure how much negotiation goes on because it is based on the appraisal and the City cannot pay more than the appraisal. Motion by Councilmember Dehen, seconded by Councilmember Look, to enter into a Purchase Agreement with Inter City Oil Co. for purchase of the parcel of land located at 6021 Highway 10 NW, Ramsey, Minnesota (PIN 35- 32- 25 -31- 0012), for a total purchase price of $879,200.00 which amount is to be funded by a Metropolitan Council RALF loan, contingent on formal approval by the Metropolitan Council approving the Purchase Agreement, entering into a Loan Agreement with the Metropolitan Council and upon City Attorney approval of the Purchase Agreement's legal terms, including environmental issues upon final negotiation with the parcel owner, deducting demolition and environmental work. Further discussion: Councilmember Look asked staff to contact the County to find out whom they use as an appraiser. City Attorney Goodrich advised that environmental testing of the site is included in the purchase agreement and staff will add demolition. Councilmember Elvig commented on the price, saying he can't fathom paying the same price as three years ago, and suggested this process be discussed at a Work Session. Councilmember Dehen stated that after the discussion of the high appraisal, he would withdraw his motion. Councilmember Look withdrew his second to the motion. Motion by Councilmember Dehen, seconded by Councilmember Look, to table consideration of the Purchase Agreement with Inter City Oil Company pending staff contacting Anoka County regarding the assessed value, determining how they arrived at the assessed value, and review of the appraisal to determine comparables and methodology used. City Council / February 9, 2010 Page 11 of 13