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HRA Regular Session 5. 1. Meeting Date: 10/09/2012 Submitted For: Kurt Ulrich By: Bill Goodrich, Administrative Services Information Title: Consider purchase of 14590 Armstrong Blvd. NW Ramsey, Minnesota (Wiser Choice Liquor Store) from M&W Holding Company, LLC. Background: Board members will recall that the City Council has recently approved the purchase and proposed terms of a purchase agreement for the property at 14590 Armstrong Blvd. NW Ramsey (the "Property") from M&W Holding Company, LLC ("M&W"). However, to date no formal purchase agreement has been executed by the City or M&W. Only negotiations have proceeded. The global transaction also includes the sale by the HRA to M&W of a lot in the proposed plat of COR TWO in order to relocate the existing Liquor Store on the Property. The public purpose for acquisition of the Property is to accommodate the City's need for a small portion of it for the Sunwood Drive Reconstruction project, the need for a part of the parcel for the future Armstrong/Hwy 10 Interchange and area wide redevelopment. Commission members are aware that M&W's principal owner is current Council Member/Commission Member Jeff Wise ("Wise"). Even though throughout the entire negotiation process with the City, Wise has abstained from any City Council votes on the subject, and has not participated in consideration of the subject in any way, including physically leaving the council chambers when the Property purchase has been considered by the City Council, State Law will not permit the City to purchase real property from a current City Council Member. HRA members will recall that this project was initiated as an HRA project, but changed to the Council under the belief that the Council was the best body to move forward with the public improvement. However, notwithstanding the above purchase prohibition by the City, state law does permit the HRA to purchase from an HRA Commission Member real property upon compliance with certain statutory requirements. Tom Bray, the HRA's lead counsel will be present at this meeting to review the state law requirements with the Commissioners. It should be noted too that the HRA does have authority to purchase the Property pursuant to the 2007 Redevelopment Plan for the Property and adjacent properties. The objectives of the 2007 Plan include: promote and seek the harmonious development of the Redevelopment Area; to provide logical and organized land use; to promote and provide development of property with minimal adverse impact on the environment; provide adequate utilities and public improvements to enhance new and existing development. These objectives together with others outlined in the 2007 Plan do confirm that the acquisition of the Property is well within the HRA's authority. The terms of a proposed purchase agreement will be reviewed with the Commission Members by staff at the HRA meeting. Attached to this case is a Deal Recap for purchase of the Property for the Commission's review. Notification: Observations: Recommendation: The development team recommends the HRA approve the proposed purchase agreement for the Property. Funding Source: N/A