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way o . _.. sq17/ (°anala <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />John Reis <br />Michael McGraw <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 9, 2007 <br />RE: McDonald's Property Exchange <br />Attached is the draft Real Estate Swap Contract with McDonald's relative to the realignment of <br />Viking Drive. The key points of this document are as follows: <br />✓ We are trading McDonald's part of the Oasis property (Parcel D on Exhibit C) for the land for <br />the street right -of -way to accommodate the relocated Viking Drive (Parcel C & F.) <br />✓ The property transfers are occurring in an "As Is" state, but are subject to environmental and <br />other testing before the deal can be consummated. <br />✓ We are accepting a 20 -year Use Restriction on Parcel C (the road right -of -way) that says it <br />cannot be used for restaurant or food service purposes. <br />✓ We are accepting a 20 -year Use Restriction of Parcels E & F that prohibits a restaurant <br />serving hamburgers. <br />✓ McDonald's is contributing $25,000 toward the cost of demolition at Oasis. (We will be <br />handling the demolition of structures. Oasis is handling tank removals.) <br />✓ The contract is contingent upon approval of McDonald's layout plan The City Planner has <br />reviewed it and stated it meets code, but we have emphasized that we cannot contract the <br />Council's legislative authority. <br />✓ McDonald's will cooperate and financially participate in the cost of replatting this area. (Staff <br />feels that it may be prudent to replat given the various splits and combinations required by <br />this project. <br />The primary concem I have at this time is satisfaction of contingencies in time to close on Oasis <br />(projected to be about February 2151). If they are not satisfied, we are taking some risk that <br />everything works out. If everything doesn't work out, we could still own Oasis. <br />Given that there have been past tank releases on the Oasis property, this creates some concern. <br />Although, Oasis is guaranteeing that they will get a closure letter from the Minnesota Pollution <br />Control Agency once tank removal is complete. (They have a closure letter from past petroleum <br />releases.) <br />Subject to further review and comment by the City Attorney, I am recommending we approve the <br />Real Estate Swap Contract with McDonald's. <br />-t- <br />