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Case #6: <br /> <br />Approve Purchase, Agreement and Loan Agreement for the Purchase of <br />Property, Located in the Highway 10 Corridor · <br /> <br />City Attorney Goodrich reviewed that the City has been. negotiating with Lora G. and Edward <br />Hamilton for the acquisition of their parcel of land lying within the Highway 10 Corridor Official <br />Map area. The parcel is located at 6615 Highway 10 NW and the parcel is approximately 3.9 <br />acres in size. The funds for the purchase are from a Metropolitan Council RALF loan program. <br />The loan proceeds will be reimbursed to the Metropolitan Council by MnDOT when MnDOT <br />has need for the parcel. Jodi Ruhle of the Tinklenberg Group has negotiated the purchase <br />agreement on behalf of the City. <br /> <br />City Attorney Goodrich explained the Council is also being asked to approve the loan agreement <br />with the Metropolitan Council. This agreement is similar to two previous loan agreements. The <br />maximum amount on the agreement is being increased from $1,128,000 to $1,132,000. He <br />explained the property will need to be insured by the City during the time period it is in the <br />City's name. It is anticipated that the property will be used for highway fight-of-way, but should <br />that project fail the property would be sold with the proceeds going back to the Metropolitan <br />Council. <br /> <br />CounciImember Elvig clarified this loan is at zero percent interest to the City and is not a cost to <br />the City; it is truly a state funded acquisition. He inquired if the 1.132 million dollars also <br />anticipates maintenance and insurance costs on the property for a number of years. <br /> <br />City Attorney Goodrich responded in the affirmative. He advised the purchase agreement may <br />need to be amended after the surVey is completed. He would like authofization to make minor <br />adjustments to the purchase agreement in final negotiations with the seller and their attorney. <br /> <br />Councilmember Elvig in,quired if staff will be making a recommendation on what is anticipated <br />for the property. He questioned if any net proceeds from the property would go back to the <br />Metropolitan Council. <br /> <br />City Administrator Norman responded in the affirmative. He indicated staff will be making a <br />recommendation on the property after the purchase is completed. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Cook, to enter into a purchase <br />agreement with Lora G. Hamilton and Edward Hamilton for the purchase of the parcel of land <br />located at 6615 Highway 10 NW, Ramsey, Minnesota, for a total purchase price of <br />$1,040,000.00 plus a $65,000.00 administrative settlement and a maximum of $15,000.00 for <br />relocation expenses which amounts are to be funded by a Metropolitan Council RALF loan, with <br />the City Attorney granted authorization to make minor adjustments to the purchase agreement in <br />final negotiations with the seller and their attorney. This motion is contingent on formal <br />approval by the Metropolitan Council approving the purchase and the purchase price AND to <br />authorize the City to enter into a Loan Agreement between the Metropolitan Council and the City <br /> <br />P68 <br /> <br />City Council/January 11, 2005 <br /> Page 12 of 18 <br /> <br /> <br />