Agenda - Planning Commission - 11/04/2004

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Councilmember Elvig questioned if Mr. Hanson will be leasing and receiving funds, while utilizing the property for 90 days flee of charge. Mr. Hanson stated the lease for the Old Holne track that is parked outside pays a rate of $130 per month and they can work that into the lease a~m-eement 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 Councilmernber Elvig, seconded by Councihnelnber Cook, to approve the purchase a~'eement 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 Zinmmrman. Voting No: None. Case #9: Acquisition of Lot 1, Block t, A.E.C. Energy Park Second Addition City Attorney Goodrich advised the City currently is a party in a Development Agreement with Direct Enclosures and Cormexus Energy that was executed August 19, 1996. The development a~'eement 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 ~br Ramsey based Vision-Ease Lens, Inc has declared ban~-uptcy. The Vision-Ease Lens operation was put up for auction and the sate is pending to Insight Equity A.P.X, LP. The new ownership has stated that the operation will continue uninten-upted in Ramsey. He explained the development a~'eement and the terms of the agreement must be transferred to the new entity to guarantee that the City received the increment necessary to fulfill the financial obligations of the development agreement. An Assumption A~'eement 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 from 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 development 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 .a~'eement with any quali~ing business. Councilmember Zimmerman inquired if this would be the appropriate time to ask for back pay of the water bills. P66 CiD.~ Council/September 28, 2004 Page 12 of 17