(1) Purchase Agreement, overview: the City entered into a purchase agreement with NIK Management/ GS Land for the sale of the 21.28 acres of city owned land (former municipal center campus) in January of 2015.  This agreement including two closings.  The first closing took place in June of 2015, with a sale price of $616,690 for 14.86 acres.  The second closing is scheduled to take place 30 days after the former municipal center site is demolished and cleaned up, with a $279,270 sale price, for 6.42 acres. 

(2) Purchase Agreement, proceeds: the City received a NET $581,954 from the closing of the GS Land Purchase Agreement (phase 1).  Those proceeds were deposited into the City's Facilities Fund ($1.44M balance).  By placing these dollars into the Facilities Fund, the Council was able to accomplish a two major items.  First, they were able to use these dollars to pay for up-front costs associated with the demolition and clean up process (essentially act as the project credit line).  Secondly, this allowed the Council to buy some time--before they made a decision on how the proceeds would be used specifically.

It should be noted--previously (2012-2014), land proceeds from the sale of the former municipal center campus were informally identified as a potential funding source for the demolition/ site clean up of the former municipal center, and/ or funding for the construction of Fire Station #2.  No formal/ final action was taken by the Council on this item.

(3) Purchase Agreement, phase 2: based on staff's discussions with GS Land, and the current condition of the market place, staff believes the second phase of the GS Land Purchase Agreement will not close as-is.  Staff expects GS Land will either walk away from the agreement, or renegotiate for a lower sale price.

(4) Demolition & Site Cleanup, budget: the attached Sources & Uses Document outlines a budget for the demolition and clean up of the former municipal center site ($371K).  At this point, this budget is an estimate.  There is a case on the Council agenda tonight to advertise for bids--for the final phase of the redevelopment project--which is expected to be the most expensive phase.

(5) Demolition & Site Cleanup, Land Swap: attached Sources & Uses Document outlines a budget for a land swap with Meadow Creek Builders.  In summary, the City swapped a small, single-lot, property located on the east side of the municipal center campus in exchange for a single lot property located on the west side of the former municipal center campus.  The City requested the land swap with Meadow Creek.  The property the City picked up from Meadow Creek will allow the City to maintain control over various infrastructure lines, keep the option open for a potential vehicle access to Nowthen Boulevard, allow for a trail connection to Nowthen Boulevard, preserve an "open space", and allow the City to potentially consider a park/trail improvement in the future.  This land swap did obligate the City to restore the lot we sold (or swapped) to a buildable condition--which means completing the curb/ gutter/ sidewalk/ demolishing the existing temporary driveway.  That work is estimated at just less than $10,000.

(6) Fire Station #2, update: Fire Station #2 opened in April 2016, as planned in the original construction contracts.  Overall, it's a great project (anesthetically and functionally), and should come in under budget.  With that in mind, staff is still (and the City Attorney) working with the architect and the general contractor to button up a handful of remnant issues/ outstanding tasks related to this project.  Staff hopes said work will be completed in August--and the project will be closed out in September.  Once the project is closed out, still will provide a detailed recap for Council review.

(7) Fire Station #2, funding: Fire Station #2 was funded via General Obligation (GO) bonds.  At this point, staff is not suggesting a new/ replacement funding source is needed.  It should be noted, if the actual costs of construction come in lower than what was budgeted, said savings would be applied to debt service payments for Fire Station #2. (bond payments).

(8) Anoka County HRA/EDA Account: annually, Anoka County levies dollars on behalf of the City of Ramsey for the purpose of providing funding for housing, redevelopment, and economic development projects.  The City's ACHRA account balance is roughly $1,000,000.  Previously (2012-2014), the ACHRA account was informally identified as a potential funding source for the demolition/ site clean up of the former municipal center.  No formal/ final action was taken by the Council on this item.

(9) Neighborhood Park: since the discussion of the former municipal center campus began in 2011, the desire of a park amenity has been periodically requested by the surrounding neighborhood.  Through 2015, the position of the City (and staff) has been that a neighborhood park is not planned for the former municipal center campus--and that the City is focusing on larger regional parks.  If the Council is interested in pursing a park amenity for this neighborhood, staff would recommend use of land proceeds as a funding source.