Agenda - Economic Development Authority - 04/02/2015

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Economic Development Authority (EDA) Meeting Date: 04/02/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 2. Title: New Policy for the Sale of City Owned Land and Template Purchase Agreement Purpose/Background: Purpose With the recent dissolution of the Ramsey HRA, it was recommended by the Council that the City consider a new policy for selling City -owned land; and a "template" purchase agreement. The purpose of this case is to consider recommending the Council adopt the attached new Policy for the Sale of City Owned Land and template purchase agreement. Background (HRA Dissolution) The City Council has officially dissolved the Ramsey Housing and Redevelopment Authority (HRA). In November 2014 the HRA passed a resolution to transfer all HRA assets to the City and to dissolve the HRA (attached to case). HRA assets include a large inventory of City -owned land located within The COR. In December 2014 the City Council held a public hearing to dissolve the HRA. As a result of the HRA dissolution, a number of HRA responsibilities were anticipated to be shifted to the EDA. A major responsibility included reviewing purchase offers for all property previously owned by the HRA (i.e. The COR and the XXX bookstore site). Background (Policy) Attached to this case is the proposed land sale policy. The intent of this policy is to route all land sale transactions through the EDA for a recommendation to the City Council. This policy is intended to be flexible, to account for special/market circumstances. Included in this policy is updated language from the City's previous policy for selling City -owned land; which was called a disposition policy (concentrated on previous park land). In summary, this new policy covers three major areas: (1) governance, (2) required terms and conditions for purchase agreements, and (3) processes (surplus city owned land process, marketing process, sale process). This policy has been reviewed by the EDA a number of times, beginning in December 2014 . This policy was reviewed by the Planning Commission in February of 2015. Background (Template PA) Attached to this case is a "template" purchase agreement. This template purchase agreement will be utilized by staff as a starting point for land sale negotiations. In some cases, the prospect buyer may strongly desire to utilize their own purchase agreement document. In said cases, staff will utilize the City's policy for the sale of City owned land to guide contract negotiations. This template purchase agreement address all items outlined in the policy for the sale of City owned land. This template purchase agreement was drafted by the City Attorney Joseph Langel based on input from the EDA. Tom Bray, whom holds a real estate certification for Attorneys, also reviewed this document. Notification: NA Observations/Alternatives: NA