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<br />City ultimately will be responsible for the clean up of any contamination as part of the delivery <br />of the properties to Robert Muir Company and these costs have been budgeted for. <br /> <br />Councilmember Elvig observed Phase 1 is more simplistic and Phase 2 is rather involved. He <br />asked if the cost involved with the Phase 2 will be part of the evaluation of the appraisal, and <br />whether the appraisal might be less on the properties to allow for the required clean up on the <br />site. <br /> <br />Mr. Lasher replied negotiations will include showing the clean up cost associated with the <br />property. It would be expected that the appraisal would be reduced by that clean up cost. <br /> <br />Councilmember Dehen asked if the City will be joining with a developer to negotiate the <br />purchase price on these various properties. <br /> <br />Mr. Lasher replied the City currently has an exclusive negotiations agreement in place with the <br />developer that determines the terms of the transaction. There is also a signed and approved <br />development agreement that this developer is currently reviewing, which further defines the <br />terms. Basically the terms state that the City will be paid approximately $23 milIion by Robert <br />Muir Company to assemble these properties and make them available to Robert Muir Company. <br />To the question of whether the City wilI be responsible for developing purchase agreements and <br />buying these parcels, the answer is yes. Right now they are starting the process to begin <br />purchase agreement negotiations with each of the property owners, ultimately hoping to have 16 <br />purchase agreements in place to be brought back for action. <br /> <br />Councilmember Look stated he would like to go on record stating he thinks this is a good project <br />and it may revitalize Town Center. He expressed concern regarding the following statement <br />included in the introduction and legal basis of the redevelopment plan: "It has been found that <br />the Redevelopment Area is potentially more useful and valuable for contributing to the public <br />health, safety and welfare than has been realized under existing development." He stated he <br />believes this has more to do with taxes and revitalization of Town Center than it does with public <br />health, safety and welfare. Secondly, before he can support this he needs to be clear on whether <br />this will involve condemnation or eminent domain proceedings. He has had conversations with <br />landowners that do not know if there will be condemnation or eminent domain proceedings. If <br />there is an eminent domain proceeding he would be more interested that the current law that has <br />been changed recently be followed in this case, as opposed to trying to squeeze it in under the <br />existing law. <br /> <br />Mr. Lasher replied with respect to whether this project will involve eminent domain, it is a <br />project that was created under the process of the old eminent domain law. The process was filed <br />accordingly with the public purpose hearing held at Anoka County and Anoka County found in <br />favor of the City for public purpose. Generally speaking, at this point in time what would occur <br />is the court would appoint a series of commissioners to begin reviewing the appraisals the City <br />has completed for each of these parcels and set a value. Generally it takes 270 days from the <br />point of which the public purpose was signed where the actions are required to take place by law; <br />the public purpose was signed October 24. This would put them out a little bit past August. The <br />purpose of that is to stand behind the City's intention to sign purchase agreements and buy the <br /> <br />City Council / January 9, 2007 <br />Page 7 of 24 <br />