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Home My WebLink AboutAgenda Packets - 1996/05/03 MEETING CANCELLATION NOTICE FRIDAY, MAY 3 , 1996 5 : 30 P .M. DUE TO THE INTERPRETATION OF STATE STATUTE REGARDING A SPECIAL MEETING Continued discussion of the Bel-Rae will be held at the Regular Scheduled Worksession, Monday, May 6, 1996 6:00 p.m . NOTICE OF EMERGENCY MEETING SPECIAL COUNCIL MEETING FRIDAY, MAY 3, 1996 5 : 30 P .M. COUNCIL CHAMBERS PURPOSE : TO DISCUSS THE PURCHASE OF THE BEL-RAE BALLROOM OR ANYTHING ELSE THAT MAY COME BEFORE THE COUNCIL MY OF REQUEST WORFOR K COUNCILSESSION CONSIDERATIONMEETINGDATE STAFF REPORT �°.,� (IOW May 3. 1996 � Partne<st' Item Description: Discussion of the Purchase of the Bel-Rae Ballroom Administrator's Review/Recommendation/, -No Comments to supplement this report CJ -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: An emergency meeting has been called at the request of the Mayor in writing for May 3, 1996 at 5:30 pm. This special meeting has been called as the result of a meeting on Wednesday May 1, 1996 held at City Hall with Mr. Jambor, his attorney Dick Fudali, the Mayor, Council member Blanchard, Cathy Bennett and myself. Background: Cathy Bennett and the City's real estate attorney from Kennedy and Gravin have been working with Tony's attorney since April 17, 1996 finalizing the purchase option\agreement that was approved at the EDA meeting on April 22, 1996. Approximately five drafts have gone back and forth between the two parties making semantic changes and significant changes such as including the following: • City to cover the cost of all closing costs and attorney fees • Including the sign easement as part of the agreement for $750,000. • Including an itemized property list • Reducing the number of years of financial data delivered to the City • Requiring the Buyer to obtain a survey of the property rather than the Seller • Including language with regards to taking over a contract with the Property Tax Management Group for 1996 taxes. As of Friday April 26, 1996 there were two items in the Option Agreement that still needed to be resolved. The items included the Default and Casualty Clauses. Cathy discussed these items with the City Attorney and it was decided that if the option was exercised then both the City and Mr. Jambor were obligated to close on or before July 31, 1996. If either party defaulted the other has the right to sue for damages. With regards to the casualty issue it was decided that if prior to closing there was, for an example, a fire,then each party would split the insurance deductible evenly which was negotiated down from the Bel-Rae incurring the full cost of the deductible. Tony's attorney wanted it worded that either party would be allowed to get out of the agreement if there was a casualty prior to closing. A revised agreement with these last two final changes was faxed the Mr. Fudali on Friday afternoon. On Monday Cathy Bennett talked to the City attorney who had not heard back from Mr. Fudali. Cathy put several calls into Mr. Fudali on Monday and Tuesday and proceeded to call Mr. Jambor on Tuesday afternoon to set a time to sign the agreement. With no word back from either party Cathy told me she was getting worried that something was wrong. I suggested having Mayor Linke talked to Tony on Wednesday to see if anything was up. Tony said that another opportunity has been presented. I told Cathy to set up a meeting with Tony and to have the Mayor there on Wednesday. Apparently Mr. Fudali was very upset with the final negotiations regarding the option agreement even though almost all changes made were at their request, and proceeded to try and put other deals together for Mr. Jambor on the sale of the Bel-Rae. As it stands now, they are considering accepting another offer and are not prepared to sign an option agreement. They may consider accepting a purchase offer from the City but this is not clear at this time. We will have a draft purchase agreement prepared for your discussion on Friday. If possible I will likely want to talk with each of you on this prior to the meeting. C(Z7it Clerk\Administratkr BEL-RAE PETITIONERS APRIL 11, 1996 Debra Arthur Marcella Neu 2475 Ridge Lane 7658 Greenfield Avenue Mounds View, MN 55112 Mounds View, MN 55112 Cindi Camarillo Denise Kunkel 5299 Greenfield 7645 Woodlawn Drive Mounds View, MN 55112 Mounds View, MN 55112 Apt. 103 Resident (Phil ?) 7595 Edgewood Drive Janice L. From Mounds View, MN 55112 5101 Edgewood Drive Mounds View, MN 55112 K. Anderson 7628 Greenfield Avenue Cece Smith Mounds View, MN 55112 8085 Long Lake Road Mounds View, MN 55112 Janice Carter 7660 Greenfield Avenue Lynn Thomson Mounds View, MN 55112 Myron Thomson 2518 Sherwood Road Tamara Schmidt Mounds View, MN 55112 2451 Hillview Road Mounds View, MN 55112 Laurie Shoop 2186 Lambert Avenue Christine L. Peterson Mounds View, MN 55112 Barry E. Peterson Mounds View, MN 55112 Paulann M. Kucera Joseph G. Kucera Arlen Ubbinga Mounds View, MN 55112 7594 Greenfield Avenue Mounds View, MN 55112 Omar Kaste 7580 Greenfield Avenue Mounds View, MN 55112 John and Mary Battmer 7504 Greenfield Avenue Mounds View, MN 55112 The attached list of persons signed the letter below: "April 11, 1996 Mounds View City Hall 2401 Highway 10 Mounds View,MN 55112 Attn:Mayor Jerry Linke and Councilmembers Phyllis Blanchard,Julie Trude,Gary Quick and Sue Hankner RE: Purchasing the Bel-Rae Ballroom Building and Property for a Community Center in the City of Mounds View Dear Mayor and Councilmembers: As a member of the community of Mounds View,I believe that a community center would benefit the most people. It could and would benefit people from early childhood thru senior citizens. I also am aware that I would have a small increase on my property taxes,but am willing to support it as it would benefit so many people. Thank you, Mounds View,MN 55112 Tele# - " NOTICE OF EMERGENCY MEETING ' et'z-12-ty U&Dizb po )4,142,-e_ C P �LC(e3C_ Tee.-774 r-rel/90,t7 infiAi3 Ai S: 3 To Ps c vs5 -4k PuR.e.tovq-5,- 7bze A)77794/u; L_ 05/02/96 10:05 FAX 612 784 3462 CITY OF MV Ij001 kik****k%kik%kik*% ********:kik% *** *** ACTIVITY REPORT *** *************************** TRANSMISSION OK TX/RX N0. 2009 cfrop CONNECTION TEL 4810551 CONNECTION ID START TIME 05/02 10:04 USAGE TIME 00'45 PAGES 2 RESULT OK NOTICE OF EMERGENCY MEETING SPECIAL COUNCIL MEETING FRIDAY, MAY 3, 1996 5 :30 P .M. COUNCIL CHA.MBERS PURPOSE: T� �ISCUSS THE . DY T Cu A cz . (F THE BEL--RAE 05/02/96 09:54 FAX 612 784 3462 CITY OF MV 0001 *************************** *** ACTIVITY REPORT *** *************************** TRANSMISSION OK TX/RX NO. 2005 CONNECTION TEL 6339550 CONNECTION ID START TIME 05/02 09:53 USAGE TIME 01'10 PAGES 2 RESULT OK NOTICE OF EMERGENCY MEETING SPECIAL COUNCIL MEETING FRIDAY, MAY 3, 1996 5 :30 P .M. COUNCIL CHAMBERS PURPOSE : TO. DISCUSS THE DT fuA 1 1W TT-TF FIF.T .-RAF. 05/02/96 09:49 FAX 612 784 3462 CITY OF MV 0001 *************************** *** ACTIVITY REPORT *** *************************** TRANSMISSION OK TX/RX NO. 2002 CONNECTION TEL 6333846 CONNECTION ID START TIME 05/02 09:48 USAGE TIME 01'08 PAGES 1 RESULT OK NOTICE OF EMERGENCY MEETING SPECIAL COUNCIL MEETING FRIDAY, MAY 3, 1996 5 . 30 P .M. COUNCIL CHAMBERS PURPOSE: TO. DISCUSS THE DT IDCUA Q-U (F TTP TUFT ..J? AF.