Minutes - Council Work Session - 12/21/2006

Home

to explore ways to finance the purchase of the Boike parcel; which would be acquired through the access to Highway 10 with a future river crossing. Ms. Ruehle advised that Mr. Boike is anxious to come to an agreement. She explained a proposal for the City to buy some time with Mr. and Mrs. Boike in the form of a lease or option to purchase, so more work can be done in researching a better financing package. Ms. Ruehle stated Mr. and Mrs. Boike are willing to negotiate. Ms. Ruehle stated Mr. Boike has been working with developers quite vigorously. She stated that The Tinklenberg Group has been told he will bring development plans to the City very soon. Ms. Ruehle explained that she has put together a few general items that might possibly go into some kind of an agreement, potentially providing for quarterly payments to pay the City back. Ms. Ruehle explained one scenario might give provision in a case where there was a project, that the City would get their money back. If there wasn't a project, the City would own the land and could sell it to a developer. Ms. Ruehle stated the next step would be to meet with the Metropolitan Council. She stated she spoke with Ms. Natalie Haas Steffen, Metropolitan Councilperson. Ms. Ruehle stated she requested a meeting with Ms. Haas Steffen and Mr. Thomas Weaver to speak about this subject. She stated the Metropolitan Council has this project in their long-range plan with $5 million dollars set aside for right-of-way acquisition. Ms. Ruehle stated there is $5 million dollars set aside in a paper document only, and the money doesn't currently exist. She explained that would be something budgeted for in the future. She indicated the Metropolitan Council should have a financial stake in this because it is a regional project. Ms. Ruehle indicated she spoke with Mr. Boike on December 20, 2006, and arrived at a suggested dollar amount to split between the City of Ramsey and Anoka County of$15,000 per quarter, or $5,000 per month for one year. Ms. Ruehle stated that her recommendation would be that if the City Council wants The Tinklenberg Group to continue to work on this, she is willing to pursue an agreement with all the entities. City Administrator Norman explained that this money would go toward the purchase price. Ms. Ruehle advised that Mr. Boike was hoping for some type of an understanding at the December 21, 2006 Special Session City Council Meeting. Mayor Gamec stated that he would like to see the parcel purchased with regional funds. He inquired whether or not Ms. Ruehle had heard anything from the City of Dayton. Ms. Ruehle replied that The Tinklenberg Group has met with the City of Dayton and they do not want to change the bridge connection. Councilmember Jeffrey noted his concern about this project, stating that although he empathizes with Mr. and Mrs. Boike and their need to know what the City's intent is, unless there is a pressing need to buy the property for development, he wasn't certain he was ready to spend the money. Councilmember Jeffrey stated that he was in agreement that securing the future corridor City Council Work Session / December 21, 2006 Page 2 of 6