Agenda - Council - 10/22/1996 - Laserfiche WebLink

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Chris Lamprecht, 17060 Bison Street NW, Ramsey, stated he has lived in his home for four years. Referring to the closing of 17 Ist Avenue, he expressed concerned about brigades - it's turning into quite a scene. A lot of this could have been prevented if City Council had stood up to this guy (Dusbabek). Jim Green, 5858 - 151st Lane NW, Ramsey, stated that it's been over a month since his wife appeared at a Council meeting asking questions about the recent Charter amendment. She has not received any answers. He then inquired when the assessment rolls would be out for the Haubrich Addition. According to the City by-laws, we need to have that assessment roll so we know if we need to £fle on that. We do not know what the assessment will be. City Attorney Goodrich stated that he responded to Mrs. Green's questions at the last City Council meeting and offered that the Green's could review that meeting. Mr. Green stated that he did not get a copy of it and that he was out of town during the meeting. With regard to the assessment rolls, Finance Officer Hart stated that they will come out with the notice of assessment the City wilt send out. We will be setting the public hearing dates at the next Council meeting. Terry Hendriksen, 15631 Ramsey Boulevard NW, Ramsey, stated that about six months ago, the public became aware ofa deal being made with the Isanti State Bank for the old public works site on Highway #47. The City would give the site and the old town hall site to the bank and the bank would deposit $80,000 with the City. Isanti State Bank, through a general contractor, would draw upon the $80,000 deposited with the City, $16,000 from the Historical Society and $22,000 from a Community Development Block Grant, to renovate the old town hall. During the renovation, the bank will have ownership of both the old town hall and the old public works facility. Following restoration, the bank will deed the old town hall back to the City. He continued that when this deal was made public, some Councilmembers and citizens, including myself, voiced concern over the fact that the public and other develoeprs who had stated their interest in purchasing the property were not notified the property was for sale. Over the past six months, information has become public and with each new revelation, the deal appears to be less and less attractive for Ramsey. Initially, we were led to believe that the bank was donating $80,000 to renovate the old town hall, but it turns out they are effectively exchanging $80,000 for the old public works property. Other developers remain interested in bidding on this property and presumably are prepared to pay more than $80,000. Another issue is that the City waived protections required by City ordinance with the following statement from the Development Agreement: "The City and permittee herein agree that the standard forms of financial guarantee to ensure the installation of required improvements are hereby waived". So the City has entered into a complicated deal with significant risk, has no financial guarantees, and apparently will receive less than they would with an outfight sale. If the City wants to undertake a risky transaction, the risk should be offset by the potential reward, this should n~anslate into a higher purchase price. However, with this deal, the higher risk is offset by a low purchase price, no financial guarantees, significant exposure to cost overruns on the old town hall renovation, and the potential of legal expenses is things go sour. He questioned why the City would need extraordinary measures to attract the Landmark Bank - he would prefer fair consistent policies for all. He stated we were told that the bank would be responsible for the cost of sewer and water;, however, the Development Agreement specifically states that the City, at its expense, will provide extension of sanitary sewer and municipal water service to the site. He stated that the job of the general contractor is to manage costs. He did not understand why it's so important to have a fhTn bid for the D.A.R.E. House but you give the Landmark Bank a blank check. Cost shifting from the bank and the old school house could develop. There are still parking concerns. The City has no agreement of this issue. It becomes more and more apparent this is not good for Ramsey. Now the bank wants to operate out of a trailer. It will be more City Council/August 27, 1996 Page 4 of 17 I I I I I I I I I I I I I I I I I I I