Adopt Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 Properties, LLC

The purpose of this case is to consider adoption of Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 Properties, LLC.  On August 6, 2009, the City acquired now known as Tract A, Registered Land Survey No. 249 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 and constructed such that this parcel is no longer needed for ROW purposes.  The Loan Agreement states that if the property is not needed for construction the property should be sold for fair market value. City Staff has listed properties on MNCAR for over one year and received 1 offer for this property.  The Met Council has reviewed the offer and has communicated to the City that it has preliminarily accepted the offer presented by 6781 Properties, LLC as documented in the attached purchase agreement.

Contingencies of the Purchase Agreement include the Buyer 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 6781 Properties, LLC 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. The city is bound by the terms in the loan agreement and the purchase agreement presented meets those terms.  $316,050 is the purchase price and the terms of the purchase agreement are typical for a commercial land transaction aside from the lease extension contingency.  The property is being sold "as-is".  In the event that the closing occurs before November 30, 2026 the City, Mille Lacs Motor Sports II, Inc. and Buyer will work to execute a Termination to Lease Agreement.

The Metropolitan Council has provided preliminary approval the terms of the Purchase Agreement. The Purchase Agreement and sale is contingent on formal approval by the Metropolitan Council.

Alternatives:
1) Adopt Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 Properties, LLC (as presented); subject to City Attorney review
2) Adopt Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 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 Loan L09-05.

Adopt Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 Properties, LLC (as presented); subject to City Attorney review

Motion to Adopt Resolution #26-207 Approving Purchase Agreement for Sale of Tract A, Registered Land Survey No. 249 to 6781 Properties, LLC (as presented); subject to City Attorney review