Agenda - Council - 05/30/2006 - Special

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DRAFT III. COST OF ACOUISITION Thc purchase price of the Interchange Property is $4,481,000.00. The terms of the purchase shalI be $I,000,000.00, down payment with the balance of $3,481,000.00 being financed by the owner of the Interchange'Property through a promissory note secured by a mortgage. The terms of the promissory note and mortgage will be 7% interest, with annual payments of $280,521.27 based upon a 30 year amortization, the frrst payment due on or before June 30, 2007 and each year thereafter, with the balance payable on or before June 30, 2016. Prior to the closing on the Interchange Property, the City shall purchase from the County the property which is legally described as Outlot B, Tooth Acres, Anoka County, Minnesota, which is currently being used by the City as a storm water pond for the Kamsey Town Center Project, for the agreed upon price of $447,000.00, as provided for in a Joint Powers Agreement between the County and City, which agreement is identified as Anoka County . Contract No. 2005-0516 ("IPA 2005-0516"). Co The County will contribute approximately $294,000 of the proceeds from the sale of Outlot B, Tooth Acres property and $412,000 of Federal Earmark Funds to match approximately $294,000 in City funds for the initial down payment of $1,000,000 for the purchase of the Interchange Property. The City and County shall share equally in any closing costs incurred by the City in the purchase of the Interchange Property. The City shall make all the annual payments required by the promissory note and mortgage to purchase the Interchange Property. Upon receipt of an invoice documenting the payments made by the City on the promissory note and mortgage, the County shall on an annual basis reimburse the City for 50% of the payments. When the 'balance of the promissory note and mortgage becomes due in June of 2016, or at an earlier date agreed upon by the County and City, the County and City shall each pay for one half of the balance of the purchase price for the Interchange Property. Do If the Interchange Property, or any part thereof, is not used for the construction of an Interchange at the intersection of Armstrong Blvd. and TH I0 or for a new route to the south that crosses the Mississippi R/ver, the City shall sell the Interchange Property, or unused part thereof, and the proceeds thereof shall first be used to repay any of the Federal Earmark Funds required by the sale, and any remaining proceeds shall be equally divided between the County and the City. -220- A~rats/JPA 02-611-92.ClLdoc 2