Agenda - Council - 12/12/2006 - Laserfiche WebLink

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CASE # '' APPROVE PURCHASE AGREEMENT AND LOAN AGREEMENT FOR THE • PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRIDOR By: William K. Goodrich, City Attorney Background: As the Council is aware, the City has been negotiating with Douglas and Julieann Hills for the acquisition of their parcel of land lying within the Highway 10 corridor Official Map area. The parcel is located at 7443/7445 Highway 10 NW and is approximately 3.4 acres in size. The property is occupied by a residence and a car repair facility. The funds for the purchase are from a Metropolitan Council RALF loan program. The loan proceeds will be reimbursed to the Metropolitan Council by MnDot when MnDot has need for the parcel. Jodi Ruhle of the Tinklenberg Group has negotiated the purchase agreement on behalf of the City. The negotiated amount appraised value is $1,160,000.00 or approximately $7.83/sq. ft. A Loan Agreement between the Metropolitan Council. and the City must also be entered into. Staff will review the terms and conditions of the Loan Agreement with the Council at the Council meeting. While the actual appraised value is $1,160,000.00, the total loan from the Metropolitan Council will be in excess of that amount in order to reimburse the City for its administrative expenses incurred in acquiring the property. The Metropolitan Council's attorneys are now reviewing the Loan Agreement for final approval. We will have the Loan Agreement available for • Council to review at the meeting. Enclosure: Map showing the parcel location Recommendation: Enter into the purchase agreement and approve the Loan Agreement. Council Action: Motion to enter into a purchase agreement with Douglas and Julieann Hills for the purchase of the parcel of land located at 7443/7445 Highway 10 NW, Ramsey, Minnesota, for a total purchase price of $1,160,000.00 which amount is to be funded by a Metropolitan Council RALF loan. This motion is contingent on formal approval by the Metropolitan Council approving the purchase and the purchase price. Motion to authorize the City to enter into a Loan Agreement between the Metropolitan Council and the City of Ramsey For Protective Acquisition of Highway Right -of -Way for the Douglas and Julieann Hillls' site located at 7443/7445 Highway 10 NW in the City in an amount not to exceed • $1,160,000.00. (PIN 28-32-25-43-0002_ Review Checklist: City Administrator —117—