Minutes - Council - 09/27/2005 - Laserfiche WebLink

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Comer I JLC, at the September 13, 2005 Council meeting. At that meeting the Council directed that thc final terms and conditions of the purchase agreement be approved by the Council. Final lcrms o[' the agreement have now been negotiated and are before the Council for final approval. l lc advi secl staff recommends the addition of the following statement to the purchase agreement: 'q'bis Agreement will be contingent on release of the restrictive encumbrance in Ramsey Town Center Addition, Anoka County, Minnesota related to the establishment of banking Ihcilitics, which covenant was recorded on September 26, 2003." (Sty Atlorncy Goodrich advised the Metropolitan Council has approved the loan agreement. The Ihncts arc available, title work has been completed, and closing is scheduled for Thursday of this week. Staff will conduct a walk-through tomorrow; there has been some storm damage that will r~ccd to bc discussed. ( ',ouncihncmbcr Cook noted this purchase agreement is with Town Center LLC, but the covenant is lhrough the lender for Town Center LLC. He questioned how the City can ask Town Center I,I ,(; to release something they do not have control of. City Attorney Goodrich replied staff believes there is an integral relationship between Town ('enter I JI~C and the lender. He advised this purchase agreement does not deal with any Town ()entcr I,l ,C land; it relates to the Deal property, but they are very much related transactions. Councilmcmbcr Elvig questioned how the City will be assured that the restrictive covenant will be removed. City Attorney Goodrich replied there will be a release from Community National Bank that states they release the document of record on this property. Councilmcmbcr Strommen requested the language in the purchase agreement be amended to slalc that the covenant will be eliminated, rather than released, as was discussed in the work st:ssi(>n prior to this meeting. City Attorney Goodrich recommended the following language be included in the purchase agreement: "This Agreement will be contingent on release, elimination, and termination of the restrictive encumbrance in Ramsey Town Center Addition, Anoka County, Minnesota related to the establishment of banking facilities, which covenant was recorded on September 26, 2003." Councilmcmber Elvig commented the City is the vehicle to purchase the property, but RALF l'unds are paying the City for that purchase. The property will be in the City's name and will be purchased fi'om Town Center LLC. This addresses his previous concern of the City doing a bridge loan for Community National Bank, as the transaction is not done through the bank. Motion by Councilmember Elvig, seconded by Councilmember Cook, to authorize final approval of purchase agreement with Ramsey Town Center LLC for the purchase of Lot 3, Block 1, Deal City Council / September 27, 2005 Page 23 of 25