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substitute transportation authority when it wants the land to do a transportation project. Another <br />method is if MnDOT abandons the program for the expansion of Highway 10, the property is <br />sold on the open market and the amount received by the City will be paid to the Metropolitan <br />Council. Under no circumstances does City money need to be used to repay the loan. The same <br />is true of the Miller property. The cost to demo the building will be roughly $10,000. The loan <br />amount is at $359,000 and $340,000 will be paid to the landowner. He advised the City must <br />keep all the property acquired under the Ralf Fund Program insured on their liability policy and <br />they need to do minor maintenance. <br /> <br />Co uncilmember Kurak inquired what would be done with the buildings on the Miller property. <br /> <br />City Attorney Goodrich replied $10,000 is included for demolition costs. If the Council wanted <br />to they could rent the property out, but the :proceeds would go to the Metropolitan Council. <br /> <br />Councihnember Elvig indicated he understands the desire not to own structures on this particular <br />process. However, he would hate to see the City mowing all of the properties down on Highway <br />10, as they do not lmow how long this will take. He agrees with moving fmwvard on this, but in <br />the future they should further discuss the demolition on properties. <br /> <br />Councihnember Zimmerman asked if the rental proceeds that would go to the Metropolitan <br />Council are for the reduction of the loan. <br /> <br />City Attorney Goodrich replied he does not think it reduces the amount of the loan. <br /> <br />Counci hnember Zimmerman requested that this be verified. <br /> <br />Councihnember Elvig indicated the tax base and jobs involved are considerations to take into <br />account. <br /> <br />Councihncmber Cook questioned if the entire amount of the sale would go to the Metropolitan <br />Council, including all the equity, if they were not to move on with the highway improvements <br />arid were to sell the lot. <br /> <br />City Attorney Goodrich indicated he would interpret the agreement to mean that all of the <br />proceeds would go to the Metropolitan Council. <br /> <br />Councilmember Kurak inquired what the situation would be if the property were to sell for a <br />lesser amount. <br /> <br />City Attorney Goodrich replied the loan would still be finished. <br /> <br />Cmmcihnember Kurak asked who would pay for any maintenance involved in renting out the <br />building. <br /> <br />City Council/November 23, 2004 <br /> Page 14 of 17 <br /> <br /> <br />