Laserfiche WebLink
Mounds View EDA June 24, 2013 <br />Regular Meeting Page 2 <br /> <br />has contacted the attorney representing the seller and at this time the City cannot get a clear title 1 <br />if it were to close. He recommended the City not close on the property until the lis pendens was 2 <br />removed. He did not have an indemnification agreement for the EDA to review at this time, but 3 <br />recommended the EDA allow staff to continue working on the closing issues and allow the 4 <br />closing to take place in July. 5 <br /> 6 <br />President Flaherty was in favor of having an agreement in place that would hold the City 7 <br />harmless from the law suit. He stated if the City has not closed by July 1st, the City would be 8 <br />responsible for the property taxes. City Attorney Riggs understood the timeline and was working 9 <br />to close on the property prior to July 1st. 10 <br /> 11 <br />Commissioner Mueller asked how damages would be paid if the property were not to close. City 12 <br />Attorney Riggs anticipated that the property would close; it would just be a matter of time. The 13 <br />City may be responsible for paying property taxes for 2014 if the property was not filed as tax 14 <br />exempt within the proper deadline. 15 <br /> 16 <br />MOTION/SECOND: Mueller/Meehlhause. To Approve the Closing and Transaction Issues 17 <br />Related to 2400 County Road H2, Mounds View Minnesota with a 90 days extension on the 18 <br />close date. 19 <br /> 20 <br />President Flaherty expressed frustration that the deal has now changed and the City may now be 21 <br />on the hook for these tax dollars. 22 <br /> 23 <br />Commissioner Mueller commented the tax burden from the delay would be approximately 24 <br />$24,000, along with additional legal fees. She encouraged staff to proceed with the sale splitting 25 <br />the expenses 50/50 with the Seller. Even with these expenses, she wanted to see the City 26 <br />proceed with the land purchase. 27 <br /> 28 <br />President Flaherty agreed the purchase should proceed, he just had not anticipated the closing 29 <br />date would be shifted so dramatically. City Attorney Riggs was hopeful that the closing could 30 <br />still take place by June 28th so long as the third party has no further delays. He then went into 31 <br />further detail about the law suit and potential closing date. 32 <br /> 33 <br />It was the EDA consensus for staff to proceed with the closing extending the closing date up to 34 <br />90 days. 35 <br /> 36 <br />Commissioner Mueller and Commissioner Meehlhause withdrew their motion. 37 <br /> 38 <br />8. REPORTS 39 <br /> 40 <br />None. 41 <br /> 42