04-13-2022 Council Packet - Laserfiche WebLink

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Additional Updates Since this was initially proposed in November, staff presented an initial offer to the broker in the amount of $312,500 based on the current Ramsey County Estimated Market Value plus a potential relocation cost for the business. This offer was initially declined by the seller. City Administrator Heineman provided an update at a Special City Council meeting on December 22, 2021. At that meeting, Council Member McGraw stated that he would like to buy this property, but does not agree that the city should pay more than fair market value for it. Fischer stated that the Council had agreed previously to go up to the $325,000 asking price if needed. He asked if the City is out of line if the seller’s asking price is met. City Attorney Kelly stated that the city needs to justify the rationale for these types of purchases, and you need to justify the balance of a better use for the property against the owner’s selling price and current market values. The City Council agreed to offer up to the selling price of $325,000, and feel it is important to purchase the adjacent property to the north. There was consensus from the Council for the City Administrator to approach the adjacent property owner of 2760 Rice Street for potential purchase. The Council also agreed that the purchase offer for 2750 Rice Street should be contingent on being able to negotiate the purchase 2760 Rice Street and approved the following Resolution. RESOLUTION NO. 2021-12-167 – APPROVE OFFERING $325,000 TO PURCHASE 2750 RICE STREET, CONTINGENT ON NEGOTIATING THE PURCHASE OF 2760 RICE STREET Motion by McGraw, seconded by Fischer. Ayes (4). Nays (0). Administrator Heineman contacted the owner of 2760 Rice Street regarding potential purchase of the property. While there was some interest, the property owner indicated he did not wish to sell the property at 2760 Rice Street at this time due to the recent sale of the liquor store business to another party. The property owner may be interested in the future depending on how successful this business is over the next 12-24 months. The current property owner of Lincoln Pawn Shop listed the property for sale in January, 2022. There were several interested buyers, but no full price offers were received. The business owner contacted Administrator Heineman about the City’s interest in purchasing the property for the original offer of $312,500. A draft Purchase Agreement is included for your consideration. Recommended Action Staff recommends the EDA approve the attached Purchase Agreement and the Addendum to the Purchase Agreement for acquisition of the property located at 2750 Rice Street.