Agenda - Council - 08/08/2006 - Laserfiche WebLink

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DRAFT M. COST OF ACQUISITION A. The purchase price of the Interchange Property is $4,481,000.00. The terms of the purchase shall be a $450,000.00 down payment with the balance of $4,031,000.00 being financed by the owner of the Interchange Property through a promissory note secured by a mortgage. The promissory note will have interest at 7% per annum with an amortization schedule of 30 years with two annual payments per year. The amortization schedule shall begin December 31, 2006. The first payment of $161,597.23 shall be due and payable on or before July 1, 2007, with payments of $161,59723 due and payable on or before each succeeding December 31 and July 1 thereafter including December 31, 2016, when the entire balance shall be due and payable. The first payment due July 1, 2007 shall also include interest on the balance from the date of closing through December 31, 2006. B. 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 Ramsey 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 ( "JPA 2005- 0516 "). C. The County will contribute approximately $45,000.00 of the proceeds from the sale of the Outlot B, Tooth Acres property and $360,000.00 of Federal Earmark Funds to match approximately $45,000.00 in City funds for the initial down payment of $450,000.00 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 December 31, 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. D. 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 10 or for a new route to the south that crosses the Mississippi River, 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 Agmts /JPA 02-6 1 1 -92.CR.doc 2 —429—