01-06-25 - Council Work Session Agenda

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CITY COUNCIL WORK SESSION STAFF REPORT ITEM NO. 8 STAFF ORIGINATOR: Michael Grochala, Community Development Director WORK SESSION DATE: January 6, 2025 TOPIC: Proposed Land Purchase, 7473 24th Avenue (Winter Property) BACKGROUND The City Council discussed the possible purchase of four properties located at 7473 24th Avenue at a special meeting on October 7, 2023. The parcels being considered are identified as Anoka County Parcel Identification Numbers 13-31-22-12-0002, 13-31-22-11-0001, 13-31-22-13-0002 and 13-31-22-14-0001 all located in Northeast Quarter of Section 13. The property is proposed to be used for the establishment of a certified wetland bank. Portions of the property will also be needed for right-of-way for the Otter Lake Road extension project. The City Council discussed a draft purchase agreement at the December 2, 2024, work session and directed staff to continue negotiations with the property owner and bring back a purchase agreement for council consideration. Staff has reached an agreement with the property owners based on the City Council direction. Purchase Parameters • The City will purchase the 138.57 acres in the amount of $2,425,000.00. To this amount will be added interest calculated at 5% APR from December 31, 2024, to the date of closing. • Seller is responsible for payment of all deferred special assessments levied against the property. The City is responsible for interest accrued from December 31, 2024, to the date of closing. • Closing is proposed for June 30, 2025. The City may extend the closing date two times by sixty (60) days. • Property taxes on the property will be prorated by Seller and Buyer as of the closing date. The City will be responsible for green acres restoration fees if applicable.