Adopt Resolution #19-063 Approving Quit Claim Deed Conveying Tract B, Registered Land Survey No. 266

Purpose:
The purpose of this case is to adopt Resolution #19-063 approving a Quit Claim Deed Conveying Tract B, Registered Land Survey No. 266, from the City of Ramsey to PSD, LLC.

Background:
In 2014 and 2015, the City extended Riverdale Drive from Alpaca Street to Traprock Street with City Improvement Project #12-22.
 
Memorandum of Understanding
 
The extension of Riverdale Drive benefited adjacent undeveloped properties by providing access to streets, utilities, and pedestrian pathways. In recognition of this, a Memorandum of Understanding (MOU) was executed between the City of Ramsey and two property owners of adjacent undeveloped parcels south of Riverdale Drive including Outlot A Tooth Acres, owned by PSG, LLC, and Lot 1, Block 1 The Diamonds, owned by 2-OI, LLC.  The MOU (copy attached) was executed May 2014 to define tentatively agreed upon terms and conditions of the parties allowing legally binding documents to be executed by the parties at a later date, and providing for required roadway right of way, trail, drainage and utility easements needed to extend Riverdale Drive through the privately owned parcels.

While constructing Riverdale Drive, City Staff coordinated construction of applicable improvements addressed within the MOU with the LLC’s to ensure that all terms and conditions were properly addressed.  Section 6 of the MOU includes conditions related to a parcel owned by Anoka County, Outlot B Tooth Acres.  Section 6.a specifically states “The City shall use its best efforts to obtain title to Outlot B Tooth Acres from the County and if successful convey that portion of said Outlot B Tooth Acres designated as “E” to one of the LLC’s as they shall select (except that portion retained by the City for the Riverdale Extension)”.  The intent of this is to allow area “E” per Exhibit 1 of the MOU, previously a regional stormwater pond, to be transferred to one of the LLC’s so they can fill it in and utilize it for parking/drive aisles to enhance development of the adjoining parcels, thereby benefiting the LLC’s. The City will benefit through the cross-access potential between the two parcels allowing drivers to navigate between the adjoining parcels without accessing Riverdale Drive, reducing congestion and improving safety on Riverdale Drive. This will also benefit the City by requiring the City to maintain one less regional stormwater pond in perpetuity, saving maintenance costs.  Lastly, the City and the County will benefit from the additional taxes generated by returning this parcel to the tax rolls.

Memorandum of Agreement
 
On August 25, 2015, the Ramsey City Council adopted Resolution #15-08-212 approving a Memorandum of Agreement (MOA) between Anoka County and the City of Ramsey for Ramsey Town Center Public Works Improvements completed as part of the Riverdale Drive extension to Traprock Street, Improvement Project #12-22 (copy attached).  The Memorandum of Agreement assigns responsibilities to the parties as required to convey the northerly 1.5 acres of Outlot B Tooth Acres, designated as "A" in Exhibit 1 of the MOA, from Anoka County to the City of Ramsey.  Costs to construct and maintain the storm sewer improvements as required to convey and fill in the remaining stormwater pond are addressed by the MOA, are as required easements for storm sewer pipes, ponds, and trails. The MOA was approved by the Anoka County Board of Commissioners on July 16, 2015, and was executed on September 22, 2015.  The City and County then began preparing the required legal documents to convey the parcel by title to the City of Ramsey, and to secure the necessary trail and drainage and utility easements outlined in the MOA.
 
Development Agreement
 
On August 25, 2015, the Ramsey City Council adopted Resolution #15-08-213 approving a Development Agreement (DA) between 2-OI, LLC, PSG, LLC, and the City of Ramsey (copy attached).  The DA formalized and updated the terms and conditions set forth by the parties in the executed MOU.  Per Section 6 of the DA, 2-OI, LLC agrees to reimburse the City for the entire cost of storm sewer improvements completed with the project to allow the remnant stormwater pond to be filled in upon transfer of the property.  Exhibit 4 of the DA addresses all cost sharing between the City of Ramsey and the LLC’s as related to approved Change Order #2.  Per Exhibit 4, the LLC’s are responsible for $166,422.70 of the total cost of items included in Change Order #2.
 
Required Legal Documents
 
Approving the attached Quit Claim Deed will convey Tract B of Tooth Acres Outlot B per attached Registered Land Survey No. 266 (RLS No. 266) to PSD, LLC, who must then pay the City of Ramsey $166,422.70 for required storm sewer improvements constructed with the Riverdale Drive extension under Change Order #2.
 
Four documents are required to convey the necessary easements and land to allow Tract B of RLS No. 266 to be conveyed concurrently from Anoka County to the City, then from the City to PSD, LLC.  These documents, which were reviewed and approved by the City Attorney, the Anoka County Attorney, and the Attorney for PSD, LLC, are attached and include the following;

1. County deed to City for Tracts A and B
2. City deed to PSD, LLC for Tract B
3. Easement agreement between 2-OI, LLC, the City and County
4. County easements to City over Tract C

 
Approval Process/Schedule
 
To the best of Staff’s knowledge, the Anoka County Board will consider approving document numbers 1 and 4 at their March 12, 2019 regular meeting, and 2-OI, LLC is in the process of executing document 3.  Once the four documents are executed by the appropriate parties, City Staff will simultaneously record all four executed documents in the order above with Anoka County.  All parties have expressed approval of the documents and this process/schedule.

No notifications are required for this case.

Alternative #1 - Motion to adopt Resolution #19-063 approving a Quit Claim Deed Conveying Tract B, Registered Land Survey No. 266, from the City of Ramsey to PSD, LLC.

Alternative #2 - Motion denying adoption of Resolution #19-063 at this time.

As part of the extension of Riverdale Drive, the City of Ramsey funded the required storm sewer improvements described within the MOA and the DA to allow Tract B of Tooth Acres Outlot B per RLS No. 266 to be conveyed from Anoka County to the City of Ramsey, then from the City of Ramsey to PSD, LLC.  The City will be reimbursed for these costs in the amount of $166,422.70 after title is conveyed to PSD, LLC.

Staff recommends adopting alternative #1. This alternative supports the terms and conditions of the attached MOU, MOA, and DA, and allows the City to recover $166,422.70 of funds expended with City Improvement Project #12-22.

Staff does not support alternative #2. This alternative opposes the terms and conditions of the attached MOU, MOA, and DA, and will not allow the City to recover $166,422.70 of funds expended with City Improvement Project #12-22.

Motion to adopt Resolution #19-063 approving a Quit Claim Deed Conveying Tract B, Registered Land Survey No. 266, from the City of Ramsey to PSD, LLC.