Minutes - Council - 07/22/2014 - Laserfiche WebLink

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Underground, Inc. in the amount of $2,649,722.45. City Engineer Westby described funding sources and how the project and easement acquisition will be funded. Motion by Councilmember Riley, seconded by Councilmember Backous, to Adopt Resolution #14 -07 -144 Accepting Bids and Authorizing Award of Contract for Improvement Project 12 -22; Riverdale Drive Reconstruction and Extension — Armstrong Boulevard to Traprock Street. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Riley, Backous, Johns, Kuzma, and LeTourneau. Voting No: None. Absent: Councilmember Tossey. 7.03: Purchase Agreement Amendment for Imperial Development for Purchase of 5195 142nd Avenue NW Economic Development Manager LaFrance presented the staff report and rationale to recommend authorization to execute an amendment to the original Purchase Agreement between the City of Ramsey and Imperial Development Company for the purchase of 5195 142nd Avenue NW. Councilmember Riley and Councilmember Backous expressed their concern that the City is being asked to hold this land open without monetary consideration. It was noted that the Purchase Agreement allows a method to extend out the closing date at a fee, yet the City is being asked to hold open the opportunity for due diligence. Councilmembers Riley and. Backous did not support the requested amendment. Councilmember LeTourneau stated the property has been owned by the City for five years and CBRE quickly received this offer. He asked about other opportunity. Richard Palmiter, CBRE, advised that this is a good use for the site and he understands that Imperial Development cannot consider further acquisitions this year. He supported this user on this site and to sell and close the property to that entity. Mr. Palmiter stated he does not know how quickly they can find an alternate user and if too many demands are made, this user may step away. He stated support for the extension request and assured the Council that during this time period, they will work to assure the project moves forward. Mayor Strommen stated there are clauses in the Purchase Agreement to accommodate their extended timeframe with consideration for the City. She asked how common it is to request a vehicle outside the Agreement, noting the City does not have a good track record with a `bird in the hand' concept when the timeline is pushed out. Mr. Palmiter stated the key consideration is whether it is a buyer's market or a seller's market. In this case, there currently is no other buyer and this entity has shown serious interest in the property. Until the market changes to a seller's market, he urged the City to be careful to not drive away a company with clear interest in the property. He explained this company wants to stay on the deal and recommended the Council take them at their word. City Council / July 22, 2014 Page 6 of 8