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Item No: EDA 7a Meeting Date: Feb 11, 2002 Type of Business: EDA Consent City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Consideration of Resolution 02-EDA-158 Approving Amendments to the Purchase and Redevelopment Agreement for 2091 Hillview Road and Amending Previously Accepted Terms of Purchase Date of Report: February 7, 2002 Background: On December 10, 2001, the EDA accepted the offer submitted by G.R. Danielson and Son Company to purchase EDA-owned property located at 2091 Hillview Road (the “Property”) for $100,100. On January 7, 2002, the EDA held a public hearing regarding the proposed conveyance of the property to the purchaser. Subsequent to the public hearing, the City began negotiating a mutually agreeable Purchase and Redevelopment Agreement (the “Agreement”) with the purchaser. Discussion: It was brought to the Council’s attention on February 4, 2002 that the purchaser objected to a provision in the Agreement pertaining to payment of all city legal fees relating to the transfer of the Property. It was pointed out that the Purchaser, had they known of the requirement to reimburse the City for legal fees associated with the transfer, would have originally offered a lesser amount to compensate for the additional expense. The Council suggested as a compromise that the accepted purchase price of the Property could be reduced to $99,000 in exchange for keeping the provision in the Agreement. The Purchaser has agreed with this change. Recommendation: Staff recommends approval of attached Resolution 02-EDA-158. _____________________________________ James Ericson Community Development Director 763-717-4021