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<br />Case #3: <br /> <br />Authorization for Acquisition for Future Northwest Metro Corridor <br />Crossing (Boike Properties) <br /> <br />City Administrator Norman reviewed that Council has been discussing the acquisition of the <br />Boike property for the future Northwest Metro Corridor Crossing. Council discussed the <br />purchase again at the July 1 ih work session, and indicated willingness to consider the purchase <br />by extending it out and reducing the earnest money to 10%. In addition the closing would be <br />moved to October or November. <br /> <br />Chairperson Strommen asked if the County has agreed to paying half of the earnest money. <br /> <br />City Administrator Norman replied this was addressed by the County this morning and included <br />in the Joint Powers Agreement that the County will pay half of the earnest money. <br /> <br />Finance Officer Lund indicated one stipulation is that the purchase price would need to be paid <br />within five years due to State Statute requirements on contact for deeds. <br /> <br />Chairperson Strommen noted the proposed purchase agreement does not reflect the escalating <br />timetable. <br /> <br />City Administrator Norman advised the motion could include a contingency that the escalating <br />timetable be included in the purchase agreement. <br /> <br />Chairperson Strommen stated the escalating timetable on the earnest money is very crucial. She <br />is on board with the idea of acquiring this property, but she is not comfortable committing the <br />City to a large expenditure without knowing where the budget sits and how this will cash flow. <br /> <br />Councilmember Elvig requested clarification that with this proposal the City is committing to the <br />purchase ofthe property, but will have time to determine how to fund it. <br /> <br />City Administrator Norman explained the earnest money will be applied towards the purchase <br />pnce. <br /> <br />Councilmember Jeffrey stressed his concern in looking at the current and future budget numbers <br />prior to adding this debt load. <br /> <br />Councilmember Strommen indicated she is not totally comfortable committing to this until the <br />Committee is able to review the earnest money timetable. <br /> <br />Motion by Councilmember Jeffrey, seconded by Chairperson Strommen, to direct staff to include <br />the purchase agreement for the Boike property on the agenda of the next Finance Committee <br />meeting, with the escalation language included. <br /> <br />Further discussion: Councilmember Elvig stressed he is not at the point of committing to the <br />purchase of this property. <br /> <br />Finance Committee / July 25, 2006 <br />Page 5 of 6 <br />