Agenda - Council - 06/10/1997 - Laserfiche WebLink

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! I I I I I I I I I I I I I I I I In 1984 we talked to the City of Ramsey's representative, Penny Curtis about the grandfather rights for 7445 Highway 10. We told them we were interested in buying the property and it was imperative that we knew exactly what grandfather rights encompassed. We told Ramsey we couldn't afford to make any improvements, and questioned if any were required. Penny Curtis said since the property and buildings were grandfathered the City of Ramsey could not require us to make any improvements now or in the future and grandfather rights pass from seller to'buyer as they did with Ernest Honebrink and us. Based on what we were told by Ramsey's representative, Penny Curtis, we felt the property was a good investment even though the price was high. We felt Highway 10 had a growth potential in the future and we could base our retirement on the value of the property increasing. We dealt with Ramsey from the beginning in a forthright manner and accepted information from them in good faith. We trusted Ramsey and assumed the City of Ramsey had integrity when dealing with their residents. On June 15, 1984 we purchased 3.8 acres legal description 7445 Highway 10, Ramsey, MN on a contract for deed at a price of $145,000 at interest rate of 14% per annum on unpaid balances, payments of $1744.38 per month "plus" property taxes and "plus" insurance. When we signed the CD the tenant was still in the steel building, a body shop and from them we received a $500.00 per month rental fee. After about six months we raised the rental on the body shop to $1000.00 per month and the tenant vacated in December 1984. We then rented the steel building to Rainbow Auto Sales from the end of December 1984 to March 1985 for 600.00 per month. By 1989 we were continuously behind in our property payments because we were unable to rent the property out and also the low rents we received from the property did not cover all our expenses. Ernie wanted to rewrite the contract for deed for less monthly payments because he could see we were not going to meet our expenses. We were behind approximately $10,000 so he added that back into.the new contract for deed as a promissory note, (due in the next two years), also the length of the contract for deed was lengthened and the price of the property was raised. We did not have any tenants in '92 and '93. To make '92 and '93 property payments we borrowed $17,000.00 from relatives of which $I3,000 is still owing on which we are making payments. Up to the present day our property has not given us one dollar profit and in our estimation is $27,000 in the red, $17,000 borrowed money and $10,000 owing Ernie Honebrink and this does not include roofing, painting, and siding on the house etc.; and improvements'on other buildings and land. Receipts were never saved as Ramsey didn't require us to do so and we in good faith believed everything that the city representative, Penny Curtis, told us about our grandfather rights. From 1984 to 1989 our tenants operating in an automotive business were never required to obtain a temporary use permit. 2 of 5