Minutes - Council - 02/12/2013 - Laserfiche WebLink

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The City Council reconvened in Open Session at 8:18 p.m. City Attorney Goodrich stated the Council held discussion of the sale of the property at 8950 178 Circle NW and reached consensus to direct staff to draft a formal purchase agreement for action at a subsequent Council meeting. 7.06: Consider Purchase of 14590 Armstrong Boulevard NW, Ramsey, Minnesota (Wiser Choice Liquor Store) from M &W Holding Company, LLC (the "Property ") (Portions closed to the public) City Attorney Goodrich reviewed the staff report and indicated staff has been negotiating terms for purchase and received amendments for discussion in Closed Session. Jeff Wise, 7901 165 Street, owner of Wiser Choice Liquor, stated he thinks it would be better to complete the purchase of his business in a timely fashion now that the Armstrong Boulevard overpass is a high priority. He noted that the rate for lease back has become a sticking point in the negotiations and explained there are market retail rates and market rates when under the threat of eminent domain for a future roadway. Mr. Wise noted some properties on Highway 10 are not at market rate and have a lease clause about tax levy exceeding the base rent to cover the property tax. He also noted the City rents to Northern Lights Church and had made leasehold improvement, while he served on the Council, that results in Northern Lights Church needing to be there for four years to pay back for that leasehold improvement. Mr. Wise suggested that when municipalities /governments come in to purchase under eminent domain or a friendly purchase, it changes the marketability of that property. In his case, the Sunwood Drive realignment meant he lost an intersection so no traffic can come from the east or from 146 Street. Mr. Wise distributed information relating to lease rates for comparable properties, noting they are at the lower end. He stated with the change in the road, his business has experienced a significant hit in number of patrons because there are nearby competitors with easier points of access. He stated if he has to pay rent, it takes revenue from the sale of his property instead of taking it from the revenue being generated. Mr. Wise stated he had provided a lower rent than included in the City's appraisal and would like this issue dealt with in an expedient manner City Attorney Goodrich advised that under Minnesota Statutes, Section 13D.05, Subd.3(c), the meeting can move into closed session to discuss confidential or non - public appraisal data and acquisition negotiations. He indicated closed session discussion will relate to property acquisitions of 14590 Armstrong Boulevard NW, Wiser Choice Liquor Store, from M &W Holding Company, LLC for right -of -way purposes and future development. The closed session will be tape recorded and that tape will be maintained for a period of eight years. Motion by Councilmember Tossey, seconded by Councilmember LeTourneau, to move to Closed Session to discuss acquisition negotiations. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Tossey, LeTourneau, Elvig, Kuzma, and Riley. Voting No: None. Absent: Councilmember Backous. The City Council meeting moved into a Closed Session at 8:29 p.m. City Council / February 12, 2013 Page 10 of 12