Minutes - Council - 08/08/2006 - Laserfiche WebLink

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. . . timeframe. The recommendation of the Finance Committee was to recommend that the City Council authorize execution of a purchase agreement for acquisition of the Boike property and to authorize execution of a Joint Powers Agreement (JPA) with Anoka County for cost sharing of the acquisition of the Boike property, contingent on the JP A being amended to include a 5-year balloon timeframe on a 30-year amortization, rather than a 10-year balloon timeframe, and to include language that the County would forfeit 50% of the earnest money if the City determines not to proceed with the purchase. Motion by Councilmember Jeffrey, seconded by Councilmember Elvig to ratify the recommendation of the Finance Committee in Case No.2 and to authorize execution of a purchase agreement for acquisition of the Boike property and to authorize execution ofa Joint Powers Agreement (JP A) with Anoka County for cost sharing of the acquisition of the Boike property, contingent on the JP A being amended to include a 5-year balloon timeframe on a 30- year amortization, rather than a 10-year balloon timeframe, and to include language that the County would forfeit 50% of the earnest money if the City determines not to proceed with the purchase. Further discussion: Councilmember Elvig stated he has a huge amount of trepidation in moving forward with this, as they are putting in jeopardy $20,000, but this is a major corridor. He noted the City of Dayton seems to be coming around with favorable things to say about a bridge crossing. Councilmember Strommen indicated the Committee had a lot of discussion about this, and she did not vote in favor of the purchase agreement. She expressed concern that it is not known at this time what the payments will be because of the 10 year/5 year issue. Another issue is that the Council looked at a proposal for a fire station tonight, and the decision on what projects to proceed with will come down to priorities. Councilmember Elvig noted one good aspect of the JP A is that the County is buying into the cost of this purchase. Mayor Gamec asked ifthe City would issue the bonds. City Administrator Norman replied the City's Finance Officer and Finance Consultant would recommend bonding for the purchase. The County would pay . half of the bond payments in accordance with the JP A. Councilmember Cook stated he also has some trepidation in putting this money out there, but it pulls everyone involved into purchasing this crossing and moving forward with this official mapping. Councilmember Olson indicated she has reservations about the September 30 date for the return of the earnest money, as the Council may not be in a position by September 30 to say yea or nay to this. Mayor Gamec noted the preliminary budget is due by September 15. Councilmember Jeffrey stated as Councilmembers and staff they need to scrutinize the budget and be certain they have made a good solid decision by September 30. Councilmember Strommen stated with the review of the budget and determination regarding this purchase there needs to be a review of other big investments, as the City will need to put off a fire station or other big road improvements to . proceed with this purchase. Motion carried. V oting Yes: Mayor Gamec, Councilmembers Jeffrey, Elvig, Cook, Olson, and Pearson. Voting No: Councilmember Strommen. City Council / August 8, 2006 Page 27 of 29