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

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This work is estimated to cost the City about $150,000-$200,000. 4. The second closing will require implementation of a "new/re-aligned" access to this site from Nowthen Boulevard. This will affect the City's NET Proceeds. See background section of this case or item 7 below for details. 5. $10,000 of earnest money will be put down on the project (1.07%). Earnest money is scheduled to be utilized 50% at closing one and 50% at closing two. $1,500 will become hard after 60 days. 6. Major contingencies include site plan, plat, development agreement, and financing approvals before closing. 7. NET PROCEEDS: depending on several unknowns, City staff is estimating NET Proceeds ranging from $101,887 to $301,887 for the proposed deal. Attached to this case is a feasibility analysis. NOTE: the City may be able to significantly improve NET Proceeds by utilizing County HRA dollars to offset required City redevelopment expenses. This item is discussed in the feasibility analysis. Alternatives Accept Staff believes the proposed offer is fair for both parities and recommends the City Council consider accepting. The proposed offer meets the City's asking sale price. The proposed terms and timelines are reasonable to staff, CBRE and the City Attorney. The proposed project accomplishes multiple City goals: selling surplus city owned land, getting tax-exempt land back on the tax -rolls, attaining land proceeds to help offset the cost of Fire Station #2, and help perpetuate the initiative to relocate Fire Station #2. Revise The City Council may be interested in amending a number of terms included in this agreement before considering approval. Based on input from the City Attorney and CBRE, staff is not currently recommending any specific amendments (several amendments have been requested by staff and the attorney, and have been made). However, any number of terms and conditions could be renegotiated further (not uncommon to request). Deny Staff has not identified concerns or issues with the proposed Purchase Agreement that would result in a recommendation to deny. If the Council is in disagreement with any terms/conditions of the proposed agreement, staff would recommend renegotiating said terms/conditions rather than denying this agreement entirely. Funding Source: NA Recommendation: Staff recommends the City Council consider adopting the attached Purchase Agreement with NIK Management INC. Explanations are included in the "alternatives" section of this case. Note: The draft EDA meeting minutes have been attached to this case as of 1/13/15. Action: Motion to (approve/amend/deny): the attached Purchase Agreement between the City of Ramsey and NIK Management INC. for 21.5 acres of City owned land contingent upon final review and amendments from the City Attorney. Attachments NIK PA 010915 Access Alternatives Ref Map of 2 Phase Deal Feasibility Analysis 01072015 NIK Background