Adopt Resolution #25-293 Approving Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC 

The purpose of this case is to consider adoption of Resolution #25-293 Approving Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC.  On June 7, 2006, the City acquired 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 preliminarily accepted the highest offer presented by MW Properties LLC and documented in the attached purchase agreement.

Contingencies of the Purchase Agreement include a satisfactory Phase 1 ESA and securing a lease extension with Mille Lacs Motor Sports II, Inc. 

The City of Ramsey has adopted Ordinance #24-11 which authorizes the future sale of all RALF properties held by the City.  When each property is sold a sales resolution is required like the one presented in this case.

the Offer by MW properties is contingent on securing a lease extension with Mile Lacs Motor Sports II, Inc. This 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 ot the purchase agreement are typical for a commercial land transaction.  The property is being sold "as-is".  In the event that the closing occurs before January 31, 2026 the City and Buyer will execute an Early Termination Amendment to Lease Agreement for leases relating to 6745 and 6701 Hwy 10 NW between the City of Ramsey and Mille LAcs Motor Sports II, Inc. which is presented for consideration.

The Metropolitan Council has provided preliminary approved the terms of the Purchase Agreement and Addendum; form approval will be the Week of December 8th. The Purchase Agreement is contingent on formal approval by the Metropolitan Council.

Alternatives:
1) Adopt Resolution #25-293 Approving Purchase Agreement for Sale of 6701 and 6745 Highway 10 to MW Properties LLC(as presented); subject to City Attorney review
2) Adopt Resolution #25-293 Approving 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.