Resolution - #20-286 - 12/08/2020

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Councilmember Menth introduced the following resolution and moved for its adoption: RESOLUTION #20-286 RESOLUTION APPROVING RELEASE OF RIGHT OF RE-ENTRY AGREEMENT WHEREAS, the City of Ramsey ( the “City”) sold the now platted Lots 1 and 2, Block 1, West Armstrong Addition (the “Property”) to PSD LLC (the “Developer”) filed in the office of the Anoka County Recorder on June 28, 2019 as Document Number 2230713.004; and WHEREAS, the City and Developer entered into a Right of Re-Entry Agreement filed in the office of the Anoka County Recorder on July 28, 2019 as Document Number 2230713.002 to construct a minimum 12,000 SF commercial/retail building on the Property and to obtain a Certificate of Occupancy on or before January 26, 2021; and WHEREAS, the Developer has constructed a 15,000 SF building shell, installed parking lot and curb and gutter (the “Improvements”) which have resulted in an increase of $1,091,400 in tax assessed value with property taxes estimated to be $41,713 annually beginning in 2022 but has not received a Certificate of Occupancy due to the lack of tenant buildout; and WHEREAS, the Developer has constructed a $335,000 Dynamic Display Billboard to assist in the marketing of the commercial retail building for tenants; and WHEREAS, the Developer has requested to be released from the Right of Re-Entry Agreement based on the substantial completion of Improvements on the Property, the negative impacts of the Covid-19 Pandemic on commercial/real estate leasing environment and the investment shown to market the property to tenants; and WHEREAS, the construction of the Improvements and investment in the Dynamic Display Billboard show that the developer did not buy the land, to hold for speculation, which is the primary purpose of a Right of Re-Entry Agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1)That the City Council acknowledges that the Developer has constructed the Improvements to the Property increasing the Tax Assessed Value that satisfy the intent of the Right of Re-Entry Agreement 2)The City Council authorizes execution of the attached Release of Right of Re-Entry Agreement by the Mayor and City Administrator; subject to City Attorney review.