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<br />. <br /> <br />. <br /> <br />. <br /> <br />requested the Council be provided with the minutes of the Charter Commission meeting in order <br />to review them prior to the public hearing date. City Attorney Goodrich indicated the Council <br />can also be provided with a list of the Charter Commission members so they can contact them as <br />well. Mayor Gamec suggested the Charter Commission be invited to a Council work session if <br />there is one scheduled prior to the public hearing. <br /> <br />. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Strommen, Cook, Jeffrey, <br />Olson, and Pearson. Voting No: None. <br /> <br />Case #3: <br /> <br />Approve Purchase Agreement and Loan Agreement for the Purchase of <br />Property Located in'the Highw/ay 10 Corridor ) <br /> <br />City Attorney Goodrich stated that the City has been negotiating with Douglas and Julieann Hills <br />for the acquisition of their parcel of land lying within the Highway 10 Corridor Official Map <br />area. The parcel is located at 7443/7445 Highway 10 NW and is approximately 3.4 acres in size. <br />The property is occupied by a residence and a car repair facility. The funds for the purchase are <br />from the RALF loan program. The loan proceeds will be reimbursed to the Metropolitan <br />Council by MnDOT when MnDOT has need for the parcel. Jodi Ruhle of The Tinklenberg <br />Group has negotiated the purchase agreement on behalf of the City; The negotiated amount <br />appraised value is $1,1600,000, or approximately $7.83!sq. ft. The allocation of the residential <br />property versus commercial property is still an issue that is being sorted out. Mr. Goodrich <br />advised a Phase 1 was completed today and there appears to be environmental issues on the <br />prQperty. There may be a Phase 2 required for a more extensive environmental review of the <br />property. The recommendation from The Tinklenberg Group is to let MnDOTmake the decision <br />on the environmental review. The owner wants this purchase expedited. Mr. Goodrich <br />. explained the third thing is that there is a considerable amount of material on the site, and it is <br />being bantered back and forth who will take care of that. His recommendation is that funds are <br />escrowed to be certain this is taken care of, because the property owner wants to remain on the <br />property after the closing. <br /> <br />City Attorney Goodrich advised a loan agreement between the Metropolitan Council and the, <br />City must also be entered into. The loan agreement is standard and states that the loan is from <br />the Metropolitan Council to the City, but the City will have title to the property pending MnDOT <br />acquisition of the property. The City does not have the authority to sell the property without <br />Metropolitan Council approval. If rent proceeds are collected they are sent to the Metropolitan <br />Council after the' City's expenses are deducted. <br /> <br />Mayor Gamec inquired who.pays for the taxes on the property if it is not leased. <br /> <br />City Attorney Goodrich replied the taxes are abated. The only time taxes are triggered is if the <br />City receives income from the property. <br /> <br />Councilmember Strommen requested clarification that the property owner is not proposing to <br />lease the property back after the sale. <br /> <br />City Council! December 12, 2006 <br />Page 9 of 29 <br /> <br />-53- <br />