Agenda - Council - 10/12/2010 - Laserfiche WebLink

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CASE 4 • 0 1 APPROVE PURCHASE AGREEMENT, LEASE AGREEMENT AND LOAN AGREEMENT FOR THE PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRDIDOR (7751 Highway 10 N.W.) By: Amber G. Miller, Planning Manager and William K Goodrich, City Attorney PURCHASE AGREEMENT: As the Council is aware, the City has been negotiating with Todd Bialon (EZ Auto Sales) for the acquisition of property within the Highway 10 corridor Officially Mapped area. The Property consists of two vacant parcels of land and located immediately east of 7751 Highway 10 NW. Together they consist of approximately 60,984 square feet or 1.40 acres. The Anoka County tax ID parcel numbers are 34- 32 -25 -31 -0004 and 34- 32 -25 -31 -0007. The funds for the purchase are from the Metropolitan Council Right of Way Allocation and Loan Fund ("RALF ") program. The loan proceeds will be reimbursed to the Metropolitan Council by MnDot when MnDot has need for the parcel. Jodi Ruehle of the Tinklenberg Group has negotiated the purchase agreement on behalf of the City. The negotiated amount and appraised value is $ 635,370.00 . Staff will review the terms and conditions of the purchase Agreement with the Council at the Council meeting. LOAN AGREEMENT: A Loan Agreement between the Metropolitan Council and the City must also be executed. Staff will review the terms and conditions of the Loan Agreement with the Council at the Council meeting. The total proposed loan from the Metropolitan Council is $ 682,970.00 , which amount includes $ 47,600.00 in administrative fees. . The administrative costs reflect both processes to acquire the property - one in 2006 -07 and then again now in 2009 -10. The costs also reflect Phase I and II environmental reviews, 3 different appraisals and two separate reviews. LEASE TERMS: The proposed lease terms include the following: 1. Leased space: Parcel 1 is 22,864 square feet and Parcel 2 is 14,400 square feet for a combined total of 37,264 square feet for a parking lot to be used for used car sales. Term: Parcel 1 -5 years beginning on Commencement Date, with consecutive 2 year options Parcel 2 -3 years beginning on Commencement Date, with consecutive 1 year options with agreement by both the Landlord and Tenant 2. Rent: $2,640.00 per month for both Parcels 1 and 2 $1,620.00 per month if only Parcel 1 is rented 3. Property Taxes: Are included in the above rent calculation. 4. Insurance: City (Landlord) will maintain liability insurance in addition to Tenant being required to do the same. Council needs to keep in mind in negotiating this lease that (1) all net rent proceeds are remitted to the Met Council, and (2) Council has previously agreed that to the extent possible, these leases need to be "market rate ".