Adopt Resolution #25-046 Approving Assignment and Assumption Agreement with Oak Terrace Estates

The purpose of this case is to inform the City Council that Oak Terrace Estates, LLC is assigning the Buyer entity in the Purchase Agreement to Ramsey Park Outlot, LLC.  The City Council entered into a purchase agreement with Oak Terrace Estates, LLC on July 25, 2024 via Resolution #24-179.  The executed purchase agreement has a provision that permits the Buyer to assign its interest without written consent of the Seller (City).  No changes are being made to the terms in the existing purchase agreement.  The ownership group is the same as the previous buyer with only a change in the name.  This name change was necessary to satisfy its existing lender requirements.  All proceeds from the sale of this parcel will be remitted to the RALF program at Met Council.  The City Attorney has reviewed the Assignment and Assumption Agreement and has approved it to form which will allow the sales transaction to proceed.

For reference, the reason that this parcel of property is being sold to Oak Terrace Estates, LLC is to bring the manufactured home park into compliance from an encroachment onto City (RALF) property.  In addition, the parcel legal description was agreed to square off the west lot line to clearly set a visible boundary and to avoid future encroachment issues to the west.  Information can be found on the previous case on July 24, 2024 attached hereto.

N/A

This action is a simple assignment and assumption of the existing purchase agreement.  No formal action is required by the City Council to approve the assignment, the resolution under consideration is simply acknowledging the assignment from Oak Terrace Estates, LLC to Ramsey Park Outlot, LLC and updating the sales Resolution #25-046 to the new Buyer entity to facilitate the sale of the parcel.  The remnant parcel created will be sold at a later date once the Hwy 10 project is completed.  A Survey of the two parcels is attached hereto.

Alternatives include:
1) Adopt Resolution #25-046 Approving Assignment and Assumption Agreement with Oak Terrace Estates (as presented); subject to City Attorney review
2) Adopt Resolution #25-046 Approving Assignment and Assumption Agreement with Oak Terrace Estates (with changes); subject to City Attorney review
3) Something else
 

This item is being handled under normal staff duties.  All proceeds from the sale will be remitted to the RALF program (Met Council) based on the terms of Loan Agreement 05-02