Agenda - Council - 02/23/2016 - Laserfiche WebLink

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This case was reviewed by the City Council on Tuesday, December 09, 2014. At the time, the Council was considering two offers. General direction from the Council was to negotiate a Purchase Agreement with NIK Management; and to bring it back in January 2015 for consideration. The attached NIK Management Purchase Agreement was reviewed by the EDA on 01/08. The EDA did pass a motion to recommend the City Council approve this agreement. Below are comments made by the EDA: • Staff should work with NIK Management to negotiate earnest money terms (i.e. amount and when it becomes hard). The EDA was especially concerned with the second closing. Staff will attempt to renegotiate this term before 01/13 (improve the City's position). • The EDA did discuss an option to remove the second phase of this project from this particular PA. This alternative was considered by the EDA to allow the City time for "uncertainties" of the second phase to become clearer (i.e. access resolution and site clean-up costs to be finalized). After discussion, the EDA did not move forward with this alternative. Reasons included: existing NIK deal ties up phase two with a competitive offer price, both access and site clean up need to occur (now or in the future, may be a moot point), this deal will support the initiative for a new Fire Station #2, the PA includes protective language regarding phase two (in the event Fire Station #2 is not built). • The EDA had questions regarding minimum architecture. The City's Community Development Director Mr. Gladhill indicated what minimum standards are in place today; and that minimum standards will result in a product similar to the surrounding neighborhood. • The EDA had questions regarding internal traffic circulation, if phase two never occurred. The City's Community Development Director Mr. Gladhill indicated that a future development agreement with the buyer for phase one of the proposed development would require a contingency to address said issue (i.e. dollars to pay for cul-de-sacs). • If available, minutes from the EDA meeting will be forwarded to the City Council before 01/13. Background (Land Use) From a land use perspective, the proposed project is set for review by the Ramsey Planning Commission on 01/08 (from a preliminary plan perspective). Results of said meeting will be disclosed during the presentation of this case; or may be viewed online at QCTV.org. Important Note on Access from County Road 5 The existing access to the this site from Nowthen Boulevard will be a major topic to discuss/resolve before the second proposed closing. The existing Nothewn Boulevard access is not owned by the City of Ramsey. Said access has been granted via a temporary easement. When the old municipal center site develops, the City will lose this temporary access easement. Therefore, the City needs to identify a solution to this problem. Attached to this case are access alternatives. This item will be discussed at a January 08 public open house and with the Planning Commission. Additionally, staff is working with affected property owners and Anoka County to validate alternatives. With proper public input, Planning Commission input, property owner input, and the feasibility of alternatives in -hand, Staff will bring this open item to the City Council for direction. This item does not need to be resolved before signing this agreement. It will need to be resolved before the second closing. Notification: NA Observations/Alternatives: Observations Listed below are highlights of the proposed Purchase Agreement with NIK Management: 1. $929,000 total offer price ($41,500 per acre for phase one and $43,500 for phase two). NOTE: the total listing price for this property was $860,000 ($40,000 per acre). 2. The proposed deal includes a two -phased closing (first closing on 14 acres in June of 2015 and second closing on 7.5 acres in June of 2016). 3. The second closing requires the City to deliver a "construction -ready" site. Meaning, removal of existing structures, improvements (parking, driveways, etc.), capping wells, removal of septic tanks (if needed), etc.