Agenda - Council - 02/08/2016 - Laserfiche WebLink

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Orr Uission: To work together to resposib y grow our community, and to provide quality, cost-effective, and efficient government ierwlcea. CC Regular Session Meeting Date: 02/08/2016 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Information Title: Real Estate Contract Amendment: City of Ramsey and McDonalds USA LLC 7. 2. Purpose/Background: PURPOSE Consider amendment of the Real Estate Contract between City of Ramsey and McDonalds USA LLC for the City Council. BACKGROUND The City of Ramsey and McDonald's USA LLC executed a purchase agreement for the sale/purchase of City -owned land in late 2012. With three amendments, that agreement closed in 2014. Upon execution of that agreement, two notable documents were recorded: (1) QUIT CLAIM DEED: This document included construction deadline language. Construction commencement must begin by February 10, 2016. Construction completion must occur by February 10, 2017. (2) RESTRICTIVE COVENANT: This document contains a broad set of criteria that restricts competing land uses near the future McDonald's site for a 20 year term. Properties that are affected include only City -owned land currently being marketed for sale by CBRE (see page 23 of original agreement for reference map). This document becomes null and void if McDonald's is not in operation by February of 2017. Late last year, McDonald's requested a two-year extension of the real estate contract completion date for the Ramsey restaurant to be located in the Southeast corner of Sunwood Drive and Armstrong Blvd. Subsequently, the City entered into negotiations to determine the conditions of such an extension. Further negotiation resulted in the proposal that the Council is seeing this evening as reviewed in work session, and outlined below. Notification: NA Observations/Alternatives: It is evident at this point that construction commencement will not occur by February 10, 2016, as required by contract (see attached Attorney's memo for discussion). However, McDonald's has agreed to not ask for the two year extension for completion of the project, and will agree to move forward abiding by the original completion date of February 2017. Rather than eliminate the commencement date and grant a two year extension on the completion date as originally requested by McDonald's, the following agreement has been negotiated: