Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />FC Case # <br /> <br />3 <br /> <br />AUTHORIZATION FOR ACQUISITION FOR FUTURE NORTHWEST METRO <br />CORRIDOR RIVER CROSSING (BOIKE PROPERTIES) <br />By: James E. Norman, City Administrator <br /> <br />Background: <br /> <br />During a City Council Work Session on May 23, 2006, the City Council discussed the <br />acquisition of the Boike property as a critical piece to the Northwest River Crossing, south of <br />T.R. #10. The acquisition would be a Joint Powers Agreement with Anoka County and would <br />require creative financing because TIF funding would,not be available at this time. <br /> <br />The City Council discussed the financing for the acquisition on June 13,2006 as well as June 27, <br />2006, and could not resolve the matter. Council was reluctant to make a major financial <br />commitment to the acquisition that would include bond financing prior to viewing the 2007 <br />preliminary budget. Staff was directed to meet, once again, with the County and property owner <br />to determine if there may be willingness to delay the acquisition and possibly reduce the amount <br />of "earnest money" required for the acquisition. <br /> <br />Staff and County representatives met with the property owners on July 17, 2006 and found that <br />there was a willingness to reduce the earnest money to 10% of the property acquisition. In <br />'addition, closing for the property could be moved to sometime in October or November so the <br />City could have a better understanding of the 2007 budget. <br /> <br />Staff discussed the acquisition with the City Council during the Work Session on July 18, 2006, <br />and received direction that may make the purchase agreement acceptable. Staff asked that the <br />earnest money be tied to the escalating time frame so that the property owners receive more <br />money for each month prior to closing and that the money would be secured in an escrow <br />account. <br /> <br />The purchase agreement and Joint Powers Agreement were drafted prior to staff and consultants <br />providing the new language that is included in this case. Staff will 'attempt to have the new <br />language prepared prior to the City Council meeting. <br /> <br />Finance Committee Action: <br /> <br />Motion to authorize execution of a purchase agreement for acquisition of the Boike property and <br />authorization to execute a Joint Powers Agreement with Anoka County for cost sharing of the <br />acquisition of the Boike property. <br /> <br />Review Checklist: <br /> <br />City Administrator <br /> <br />Be: 7.25.06 <br /> <br />-403- <br />