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Councilmember Kuzma stated since they want to change the agreement, he would ask whether <br />the property can remain available for sale with them having a first right of refusal. <br />Mr. Palmiter stated he wants them to stay focused on this site and if they think the City is <br />looking for another buyer, they may step away. In addition, it may help the City to show this <br />property as sold because it demonstrates market interest in Ramsey. <br />City Administrator Ulrich reviewed the agreement provisions and costs to extend the closing. <br />He noted the Council could propose a fee to extend the closing. <br />Mr. Palmiter stated it is better if they spend money to advance the cause than for the City to get <br />some money because it shows how committed they are. <br />Councilmember Riley noted the original agreement only requires $1,000 to extend the closing <br />and it would show their commitment and seriousness in Ramsey. <br />Councilmember Backous agreed and stated the City should receive something for this <br />consideration. In addition, this decision would set precedence for future requests. <br />Economic Development Manager LaFrance stated Imperial Development has offered to make <br />their $1,000 earnest money as non-refundable, which shows their commitment, but if directed, <br />staff could negotiate a proposition of additional earnest money down. <br />Motion by Councilmember Riley, seconded by Councilmember Backous, to not approve an <br />amendment to the original Purchase Agreement between the City of Ramsey and Imperial <br />Development Company for the purchase of 5195 142nd Avenue NW, to authorize staff to counter <br />for a $3,000 nonrefundable escrow to hold the property open for an additional 180 days, and to <br />approve the other requests within the Addendum. <br />Further discussion: Councilmember LeTourneau expressed concern with the likelihood this <br />buyer may step away, noting it is the opinion of CBRE, a professional broker, to approve the <br />request. Councilmember Kuzma agreed, noting the City has owned this property since 2005 and <br />the City's broker supports keeping this deal alive. Mayor Strommen stated she appreciates that <br />advice and would invite a counter in how to move the project forward. She noted the City's past <br />consideration of extensions has resulted in many projects that did not come to fruition. Rather, <br />she supported the motion as a way to lead this project towards commitment. Councilmember <br />Riley stated a purchase agreement has been signed and now within 60 days, they are asking the <br />City to hold the property for a year and if the project does not move forward, they could take <br />their money back. Councilmember Riley stated he wants to work with Imperial Development <br />and is willing to hold the property for a year for a payment of $3,000. Councilmember Johns <br />agreed there should be consideration for an amendment but if there are counters, she supports <br />creating additional milestones to further the project. Councilmember Backous stated he thinks <br />$3,000 is not enough, but will support the motion because the City has been holding this project <br />for so long. He stated this entity signed a contract and the City deserves something for changing <br />it. Councilmember LeTourneau clarified that a level of consideration was given in changing the <br />earnest money to non-refundable. Mayor Strommen called the question. <br />City Council / July 22, 2014 <br />Page 7 of 8 <br />