Minutes - Council - 12/12/2000 - Laserfiche WebLink

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Councilmember Zimmerman stated that he is not in favor of a low cost housing development in the proposed location because a lot of residents in the area are opposed to the development and for that reason he cannot support it. City Administrator Norman noted that the only issue in front of the Council was the sale of land. Councilmember Zimmerman replied that if ACCAP purchases the property they will be back with a development proposal. Councilmember Hendriksen stated that in the purchase agreement that was approved in February it stated that if the City and ACCAP has not executed a development agreement by July 1, 2000 the agreement would terminate. City Administrator Norman noted that the City requested an extension to that deadline. Counciimember Hendriksen inquired as to what the legal implications are if the City does not proceed with the sale of the property. City Attorney Goodrich explained that in Section 5 of the purchase agreement it states that either party can terminate the agreement prior to the closing date by giving written notice. So if the Council wishes to terminate the agreement they should give written notice to the buyer. Mayor Gamec suggested having the City Attorney review all the agreements that have been made with ACCAP and then bring the issue back to the Council. City Attorney Goodrich replied that the Council needs to determine whether or not they want to sell the land and if they chose not to sell the land then he needs to advise the Council on how to terminate the agreement or go ahead and proceed with the closing. Councilmember Anderson questioned the timeline. Mr. Johnson explained that their 2.5 million dollars in funding commitments will be gone if they are unable to purchase the property in 2000. Motion by Councihnember Anderson, seconded by Mayor Gamec, to execute development agreement with the Anoka County Community Action Program, Inc. contingent upon introduction and final adoption of the City of Ramsey's required sale of land ordinance. Further discussion: Councilmember Anderson inquired that if ACCAP were to purchase the land would the 2.5 million in funding be tied to that particular property or could ACCAP make a land trade or sell the property for another parcel in the City. She stated that there are people in Ramsey that need this type of housing and she does not like to see 2.5 million dollars being lost. Mr. Johnson replied that the funds are land specific, but they would be in a better negotiating position if the City were to proceed with the sale of the land. He stated that ACCAP has a City Council/December 12, 2000 Page 9 of 25