Agenda - Council - 01/25/2005 - Laserfiche WebLink

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Case #6: Approve Purchase Agreement and Loan Agreement for the Purchase of Property Located in the HighWay 10 Corridor City Attorney Goodrich reviewed that the City has been negotiating with Lora G. and Edward Hamiltm~ for the acquisition of their parcel of land lying within the Highway 10 Corridor Official Map area. The parcel is located~at 6615 Highway 10 NW and the parcel is approximately 3.9 acres in size. The funds for the Purchase are from a Metropolitan Council RALF loan program. The loan proceeds will be reimbursed to !he iMetropolitan Council by MnDOT when MnDOT has need for the parcel. Jodi Ruhle of(the'Tinklenberg Group has negotiated the purchase agreement on behalf of the City. City Attorney Goodrich explained the Councii is also being asked to approve the loan agreement with the Metropolitan Council. This agredment is similar to two previous loan agreements. The maximum amount on the agreement is being increased from $1,128,000 to $1,132,000. He explained the property will need to be insured by the City during the time period it is in the City's name. It is anticipated that the Property Will be used for highway right-of-way, but should that project fail the property would be sold with the proceeds going back to the Metropolitan Council. Councihncmber Elvig clarified this loan is'at Zero percent interest to the City and is not a cost to the City; it is truly a state funded acquisition. He inquired if the 1.132 million dollars also anticipates maintenance and insurance costs on the property for a number of years. City Attorney Goodrich responded in the affirmative. He advised the purchase agreement may need to be amended after the survey is complgted. He would like authorization to make minor adjustmcnts to the purchase agreement in final negotiations with the seller and their attorney. Councilmember Elvig inquired if staff will be making a recommendation on what is anticipated for the property. He questioned if any net proceeds from the property would go back to the Metropolitan Council. City Administrator Norman responded in the affirmative. He indicated staff will be making a recommendation on the ~property after the purchase is completed. Motion by Councihnember Elvig, seconded bY Councilmember Cook, to enter into a purchase agreement with Lora Gl Hamilton and Edward Hamilton for the purchase of the parcel of land located at 6615 Higllway 10 NW, Ramsey, Minnesota, for a total purchase price of $l,040,000.00 plus a $65,000.00 administrative settlement and a maximum of $15,000.00 for relocation expenses which amounts are to be fi4nded by a Metropolitan Council RALF loan, with the City Attorney granted authorization t° make minor adjustments to the purchase agreement in final negotiations with the seller and their attorney. This motion is contingent on formal approval by the Metropolitan CoUncil appi~oving the purchase and the purchase price AND to authorizc the City to enter into a Loan Agreement between the Metropolitan Council and the City of Ramsey For Protective Acquisition of Highway Right-of-Way for the Hamilton parcel located at 6615 Highway 10 NW in the City in an amount not to exceed $1,105,000. City CounCil/January 11, 2005 Page 12 of 18