Adopt Resolution #26-036 Approving Amendment to Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC 

Purpose:
The purpose of this case is to consider adoption of Resolution #26-036 Approving Amendment to Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC. In December 2025 the City Council approved the sale of 6701 and 6745 Hwy 10 to MW Properties LLC.  City Staff has been working with MW Properties during the due diligence phase of the Purchase Agreement to ensure that proposed uses by the Buyer are compatible with zoning, building code and fire code and completion of a satisfactory Phase 1 ESA.  During this process a number of items were identified by City Staff and the Buyer that needed to be clarified/remedied.  These items have been resolved to the satisfaction of the Buyer but it has pushed back the time for the closing a few weeks.  As such, MW Properties LLC and City Staff are asking the Council to the Closing date for the Purchase Agreement to on or before February 5, 2026.

Property History
On June 7, 2006, the City acquired 6701 Highway 10, legally described as Lot 3, Block 1, Deal Industrial Park on September 29, 2005 and 6745 Hwy 10 NW legally described as Lot 2, Block 1, Deal Industrial Park on August 10, 2006 for future Hwy 10 right-of-way utilizing the Right-of-way Acquisition Loan Fund (RALF) administered by Met Council.  The approved Hwy 10 construction layout has been modified such that this parcel is no longer needed for ROW purposes.  The Loan Agreement states that if the properties are not needed for construction the property should be sold for fair market value. City Staff has listed properties on MNCAR for over 2 months and received 2 offers for the property.  The Met Council has reviewed the offers and has communicated to the City that it has accepted the highest offer presented by MW Properties LLC and documented in the attached, executed purchase agreement.

Contingencies of the Purchase Agreement included a satisfactory Phase 1 ESA and securing a lease extension with Mille Lacs Motor Sports II, Inc. Both of the contingencies have been satisfied.

The City of Ramsey has adopted Ordinance #24-11 which authorizes the future sale of all RALF properties held by the City.  A Sales Resolution was previously adopted in December of 2025.

The offer by MW Properties is contingent on securing a lease extension with Mille Lacs Motor Sports II, Inc. MW Properties has negotiated a lease with Mille Lacs (Power Lodge).  This lease extension will allow this existing Ramsey business to continue to operate for a period of time that will allow them to make decision for a permanent business solution.  This sale will put the property back on the tax rolls and also lead to future investment property and parking lot. The city is bound by the terms in the loan agreement and the purchase agreement presented meets those terms.  $2,000,000 is the purchase price and the terms of the purchase agreement are typical for a commercial land transaction.  The sales price is not changing with the proposed Amendment to Purchase Agreement.  The property is being sold "as-is".  The Closing should closely coincide with the termination of the lease by Mille Lacs Motor Sports II, Inc. at the end of January.

The Metropolitan Council has approved the terms of the Original Purchase Agreement and Addendum.  The Amendment to Purchase Agreement proposed does not impact Met Council approval.

Alternatives:
1) Adopt Resolution #26-036 Approving Amendment to Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC (as presented); subject to City Attorney review
2) Adopt Resolution #26-036 Approving Amendment to Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC(with changes); subject to City Attorney review
3) Something else
 

This action is being done as part of normal staff duties. All proceeds from the sale are remitted to the RALF Program administered by Met Council. The Sale of the Property will satisfy City requirements of RALF Loans L05-05 and L06-09.