Minutes - Council - 12/12/2006 - Laserfiche WebLink

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City Attorney Goodrich replied the owner would like to stay on the property for 180 days without a lease. Councilmember Strommen asked if the City would assume any liability for the environmental issues if this becomes City property. City Attorney Goodrich replied no; this would be included in the loan agreement. MnDOT is requiring the Phase 1, and will be interested in this Phase 2 issue as well. Councilmember Elvig questioned if the owner is requesting to remain on the property for 180 days during the transition period while the purchase is occurring, or if the owner will want to lease back the property for a period of 180 days, which would require entering into a lease with insurances and a relocation payment. City Attorney Goodrich explained it is only the residential portion of the property that would remain for the 180 days. There are leases with three commercial tenants that are cancelable, and with the closing they will take the appropriate steps to move forward on that. All of tenants are entitled to relocation, and this has been reviewed by a relocation expert. There has been discussion with regards to the vehicles on the site. Staff is comfortable the relocation entitlement can be used towards moving the vehicles, but there is less ability for this with the residential property. This is why he has recommended the escrow. Councilmember Elvig stressed avoiding a lease with the residential property, which would be difficult to control and would have a fair amount of expense. City Attorney Goodrich indicated this is part of the purchase agreement. There is not a lease; in staying on the property they assume all liability and pay all their own utilities; the City is not held responsible. Mayor Gamec asked if the owner would pay a portion of the taxes during the 180 day time period that they remain on the property. City Attorney Goodrich replied he will verify this. He recommended the following be included in the motion: contingent on City Attorney approval as to final terms of the purchase agreement. Motion by Councilmember Cook, seconded by Councilmember Olson, 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$I,160,000 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, and contingent on City Attorney approval as to final terms of the purchase agreement. Motion carried. V oting Yes: Mayor Gamec, Councilmembers Cook, Olson, Elvig, Jeffrey, Pearson, and Strommen. Voting No: None. City Council / December 12, 2006 Page 10 of 29