01-10-2007 Council Agenda - Laserfiche WebLink

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of 7 Canada MAYOR Bill Blesener COUNCIL Jim LaVaile Rick Montour Barbara Allan John Keis 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www. ci.little- canada.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 5, 2007 RE: Oasis Purchase Agreement Staff has reached a verbal understanding with Oasis (Twin Cities Avanti Stores is the owner) for the purchase of the property at 2250 Rice Street. This acquisition is necessary for our Viking Drive realignment project. The key features of the deal are as follows: ➢ Purchase price of $815,000. Please note that we have not obtained an appraisal on this property. However, the County's estimated market value is above this amount. Furthe nlore, this price seems to be in the ballpark based on other recent sales of gas /convenience stores in the area such as Sinclair and Citgo, especially when comparing the reported sales price to the County's EMV ($560,000 vs. $351,600 and $960,000 vs. $627,600 respectively). ➢ Oasis will remove tanks from the site in accordance with Minnesota Pollution Control Agency guidelines (There appears to be four tanks). This will include all of the necessary environmental work to obtain a "closure letter" from MPCA. This meets the needs of McDonalds and saves us about $6,000 in cost for a Phase II. (We do have a copy of Phase I performed January 24, 2006.) There was a petroleum release on this site that was confined to surface soils in the vicinity of the tanks. A closure letter was obtained on April 16, 1996. ➢ A contingency involving the execution of an agreement with McDonalds for the necessary land transfers will be included. ➢ We are setting a goal of closing by the end of January, subject to contingencies. ➢ I have discussed the possibility of a lease back until we need to demolish the site. They have not responded on that issue as of yet. ➢ Taxes will be prorated to the date of closing. ➢ We will be assuming any assessments associated with Viking Drive. I hope to have the purchase agreement finalized and ready for approval at Wednesday's meeting. I will involve the City Attorney in the review of the final document.