Agenda - Council - 01/10/2006 - Laserfiche WebLink

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LOAN AGREEMENT NO. L-05- Ralph's Pawn Shop (610I Highway I0) LOAN AGREEMENT BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF RAMSEY FOR PROTECTIVE ACQUISITION OF HIGHWAY RIGHT-OF-WAY THIS AGREEMENT is entered into, this __ day of January 2006 by THE METROPOLITAN COUNCIL ("the Council"), and THE CITY OF RAMSEY ("the Recipient"). WHEREAS, the Council is authorized by Minnesota Statutes section 473.167, subdivision 2, to make loans to counties, towns, and cities situated within the metropolitan area for the purpose of acquisition of property within a proposed state trunk highway right-of-way when acquisition is necessary to avert the imminent conversion of such property to a use which would jeopardize the property's availability for highway construction; and WHEREAS, the Recipient is an eligible governmental unit and has applied for such a loan to accomplish the acquisition of threatened right-of-way within the officially-mapped area to the north of Trunk Highway I0 fi.om approximately Armstrong Boulevard to the Ramsey-Anoka City boundary and is bounded to the north by the BNSF rail line; and WHEREAS, the Council has authorized that such a loan be made to the Recipient from the Metropolitan Right-of-Way Acquisition Loan Fund. NOW, THEREFORE, in consideration of the mutual promises and covenants in this agreement, the Council and the Recipient agree as follows: I. LOAN FUNDS 1.01 Total Loan Amount. The Council shall loan to the Recipient, in accordance with the loan schedule set forth in paragraph 1.02, a total loan amount notto exceed $381.300.00. 1.02 Loan Schedule. Upon execution of this loan agreement, the Council will advance $363~000.00 to the Recipient for the }mrchase price 9f that real property described in Exhibit A, which is attached to and incorporated in this agreement. The purchase price of the real prop6ny includes any buildings or structures located on the parcel. Upon receipt by the Council of satisfactory and complete documentation describing the Recipient's actual appraisal, title evaluation, and other acquisition costs, the Council will advance to the Recipient such actual costs, in an amount not to exceed $18.300.00. These other eligible costs are: · Appraisal fees · Appraisal review fees · Fees for title evaluation, survey, negotiations etc. 1.03 Authorized Use of Loan Funds. The parties agree that loan funds may be used only for the purchase price of the property described in Exhibit A, and the acquisition costs actually incurred by the Recipient to acquire the property described in Exhibit A. The parties agree that loan proceeds shall no~t be used to clean up contaminated soil or other pollutants, if any are discovered on the site. IL ACCOUNTING, AUDIT, AND RECORDS REQUIREMENTS -226-