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<br />CASE # <br /> <br />o <br /> <br />APPROVE PURCHASE AGREEMENT AND <br />LOAN AGREEMENT FOR THE <br />PURCHASE OF PROPERTY LOCATED IN THE <br />HIGHWAY 10 CORRDIDOR <br />(7751 Highway 10 N.W.) <br /> <br />By: William K Goodrich, City Attorney <br /> <br />Background: <br /> <br />PURCHASE AGREEMENT: <br />As the Council is aware, the City has been negotiating with Todd Bialon (EZ Sales) for the <br />acquisition of a parcel of land lying within the Highway 10 corridor Official Mapped area. The <br />parcel is located at 7751 Highway 10 NW and is approximately 51,063.6 square feet or 1.31 acres in <br />size. The Anoka County tax ill parcel no. is 34-32-25-31-0004 and 34-32-25-31-0007. The funds <br />for the purchase are from the Metropolitan Council RALF loan program. The loan proceeds will be <br />reimbursed to the Metropolitan Council by MnDot when MnDot has need for the parcel. Jodi <br />Ruehle of the Tinklenberg Group has negotiated the purchase agreement on behalf of the City. The <br />negotiated amount and appraised value is $1,180,100.00 plus $62,900.00 as an Administrative <br />Settlement. Staff will review the terms and conditions of the purchase Agreement with the Council <br />at the Council meeting. <br /> <br />LOAN AGREEMENT: <br />A Loan Agreement between the Metropolitan Council and the City must also be entered into. Staff <br />will review the terms and conditions of the Loan Agreement with the Council at the Council <br />meeting. The total proposed loan from the Metropolitan Council is $1,254,080.00, which amount <br />includes $11,080.00 in administrative fees. The Metropolitan Council's attorneys are now <br />reviewing the Loan Agreement for final approval. <br /> <br />LEASE TERMS: <br /> <br />The proposed lease terms include the following: <br /> <br />1. Leased space: 5400 square feet consisting of 1000 square foot office; 1000 square foot <br />storage and 3400 square foot heated warehouse. <br />2. Term: five year lease with options to extend. <br />3. Rent: 6.38 per square foot for office; 3.38 for warehouse with a total rent of $4,184.00 per <br />month plus taxes. <br />4. Property Taxes: Tenant shall pay the property taxes. <br />5. Insurance: City (Landlord) will maintain hazard insurance. <br /> <br />Council needs to keep in mind in negotiating this lease that (1) all net rent proceeds are remitted to <br />the Met Council~ and (2) Council has previously agreed that to the extent possible, these leases need <br />to be "market rate". <br />