Agenda - Council - 01/22/2013 - Laserfiche WebLink

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CC Regular Session Meeting Date: 01/22/2013 By: Bill Goodrich, Administrative Services 7. 4. Information Title: Consider Purchase of 14590 Armstrong Blvd. NW, Ramsey, Minnesota (Wiser Choice Liquor Store) from M&W Holding Company, LLC. (the "Property") (Portions of this meeting may be closed to the public). Background: The immediate issue is whether or not the possible purchase of the Property should be considered by the City Council on behalf of the City or by the HRA. The Owner of the Property is M&W Holding Company, LLC, which is owned by Jeff Wise who served on the City Council from January 1, 2008 through December 31, 2012. Consideration of this purchase was by the City in September, 2012. When it became apparent that the City could not legally purchase the Property because of Councilmember Wise's status as a sitting councilmember, the purchase transaction's consideration was moved to the HRA. The reason for this was that the HRA could legally purchase the Property from Mr. Wise's corporation, even though he was still a Councilmember. After consideration the HRA tabled the matter in October, 2012 and no further conclusive action has been considered by either the Ctiy Council or the HRA. There is presently no legal obligation requiring that either the City or HRA purchase the Property. Mr. Wise, as is known, is no longer a Councilmember and therefore it is now legally possible for either the City or HRA to purchase the Property from Mr. Wise's corporation. Observations/Alternatives: The City Council has three possible alternatives which are: 1. Take no action and not consider City purchase of the Property 2. Request that the HRA consider or not consider purchase of the Property 3. Determine that the City should consider purchase of the Property and meet to consider purchase agreement terms Reasons for the City to purchase the Property as opposed to the HRA include that the City's purpose for acquistion of the Property is for future right-of-way for the Armstrong Interchange Project. In addition the City already owns the property to the south which is presently leased by the Go Kart facility. While it is within the authority of the HRA to purchase the Property, it is more typical that a City acquire public improvement rights -of -way such as for the Armstrong Interchange Project. In the event the Council chooses alternative three, the Council will want to review the Property's appraisals and consider terms for the purchase. Recommendation: That the City attempt to negotiate the purchase the Property and that the City Council be the body that considers its purchase. Funding Source: N/A Council Action: