Minutes - Council - 09/28/2004 - Laserfiche WebLink

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Councihnember Elvig questioned if Mr. Hanson will be leasing and receiving funds, while utilizing the property for 90 days free of charge. Mr. Hanson stated the lease for the Old Home truck that is parked outside pays a rate of $130 per month and they can work that into the lease agreement that the money would go to the City. Mayor Gamec commented it is always nice to be able to work out something like this without condemnation, and he appreciates Mr. Hanson's cooperation. Mr. Hanson indicated their appraisal came in at $600,000. He would always like more money than was negotiated here but feels this is the best deal under the circumstances. This has been quite a hardship with his family. Motion by Councilmember Elvig, seconded by Councilmember Cook, to approve the purchase agrcemcnt and acquire 14040 Azurite St. NW, with any amendments to be negotiated with the City Attorney. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Cook, Kurak, Pearson, Strommen, and Zimmerman. Voting No: None. Case #9: Acquisition of Lot 1, Block 1, A.E.C. Energy Park Second Addition City Attorney Goodrich advised the City currently is a party in a Development Agreement with Dircct Enclosures and Connexus Energy that was executed August 19, 1996. The development agreement is in effect until July 31, 2006. The terms of this agreement state that this property needs to generate at least $167,968 in Tax Increment per year. Recently, BMC, Inc., the parent company tbr Ramsey based Vision-Ease Lens, Inc has declared bankruptcy. The Vision-Ease Lens operation was put up for auction and the sale is pending to Insight Equity A.P.X, LP. The new owncrship has stated that the operation will continue uninterrupted in Ramsey. He explained thc development agreement and the terms of the agreement must be transferred to the new entity to guarantee that the City received the increment necessary to fiflfill the financial obligations of the development agreement. An Assumption Agreement executed by Connexus, Vision-Ease Lens, Inc., the City of Ramsey and Insight Equity would effectively transfer the development agreement to Insight Equity. A certificate of good standing and adequate information has been obtained from the prospective buyer to insure that the business is solvent and is stable fi'Oln a business standpoint. This is done to assure the City Council that the business is solid and that there should not be any foreseeable problems with performance under the devclopmcnt agreement. The closing for the proposed sale of the property is unclear but staff is seeking approval of the sale of the property and building and to enter into an assumption agrcement with any qualifying business. Councihnember Zimmerman inquired if this would be the appropriate time to ask for back pay of the water bills. City Council/September 28, 2004 Page 12 of 17