12-22-2021 Special Council Minutes

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MINUTES CITY COUNCIL SPECIAL MEETING DECEMBER 22, 2021 notice is served to the developer, and additional language can be added if the project is not built within a certain timeframe. Fischer stated he wants some sort of buyback plan or right of first refusal if the project is not completed, rather than the developer being able to resell the property for a profit and the city not having control over future projects. McGraw asked if the developer was going to be asking for Tax Increment Financing (TIF). The City Administrator stated that is usually the case with this type of project, but there are also other ways to assist, such as writing down the land or using the new Ramsey County Housing and Redevelopment Authority levy that is just beginning in 2022. He stated there are benefits to having TIF Districts because the funds received from the districts can be used for future redevelopments and it would not affect the tax levy. McGraw asked if the developer keeps failing to get financing, when would the city would get the property back. City Attorney Lemmons stated the agreement gives them until December 31, 2022, and then the city can terminate the agreement. McGraw asked if the developer could sell the property at the last minute. City Attorney Lemmons stated that there is language for assignments, but that can be tightened up to state that the seller must agree to a future buyer. City Attorney Lemmons stated that there is a section stating that the buyer can extend the agreement for another 90 days if they pay another $25,000. The City Administrator stated this extension provision is likely included to account for timing of financing and the construction season. City Attorney Lemmons stated that a year is not unreasonable anymore to begin construction, but the 90- day extension is long. He suggested shortening the extension to 30 or 60 days and the developer can always ask for an amendment to the agreement if needed. Keis asked if this agreement is for one building or both buildings. City Attorney Lemmons stated it is typical for the construction timeline to only be for one building. He noted it could be changed, but it will then get complicated. He stated that a TIF development agreement will state that the property must have a certain tax - assessed value by a specific date or they have to come up with the difference. The City Administrator explained there are two separate parcels so the city could take the second parcel back if it is not developed. City Attorney Lemmons clarified that the extension should be shortened to 30 days, and the developer can ask the City Council for longer if needed. He stated there is no language to indemnify the City against any liens, and they should turn over all testing information if the property comes back to the city. He reviewed other changes that should be made to the purchase agreement. Fischer introduced the following resolution and moved its adoption: RESOL UTION NO. 2020-12-166 —APPROVE PURCHASE AGREEMENT FOR THE SALE OF CITY -OWNED TWINLAKE BOULEVARD PARCEL A (PID 313022310001) & PARCEL B (PID 313022310002) TO REUTER WALTONDEVELOPMENT, LLC FOR $480,000 WITH THE CHANGES PROPOSED BY THE CITYATTORNEY, INCLUDING EARNEST MONEY OF $50, 000 AND EXTENSIONAT $251000, CONTINGENT ON LANGUAGE FOR REVERTING THE LAND BACK TO THE CITY IF THE PROJECT DOES NOT HAPPEN 2