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HomeMy WebLinkAbout8.b. City Acquistion of 3205 143rd StreetAGENDA ITEM: City Acquisition of 3205 143` Street AGENDA SECTION: Old Business PREPARED BY: Kim Lindquist, Deputy Director AGENDflt Cam! ATTACHMENTS: Draft Resolution, Revised Property Lease Contract for Deed (to be provided on Tuesday May 17, 2005) APPROVED BY: ill RECOMMENDED ACTION: Adopt Draft Resolution for City Acquisition of Property Located at 3205 143` Street. ACTION: City Council Meeting Date: May 17, 2005 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION BACKGROUND On October 5, 2004 the Port Authority discussed the purchase of several parcels in the Downtown area, including the property at 3205 143` Street. The Port Authority directed staff to continue investigating purchase of the property On March 1, 2005 the Port Authority reviewed the purchase agreement documents. They expressed concern about the 8% interest rate proposed in the agreement Additionally, there was a question about the relocation payment The Port Authority approved the resolution of supporting Council acquisition of the property, although they asked for more information on those two topics. The Council continued the item to permit staff time to obtain additional information. On March 15, 2005 the City Council approved purchase of the property of the property with a change to the interest rate of 6 Since that time the property owner, Mr. Olsen has asked the City to allow him to rent back the property for another year Staff offered to rent the property to Mr. Olsen for $1000 /month and all property taxes would also be covered He is agreeable to the change. Because of this change the lease and contract for deed need to be modified and re- approved by the Council. DISCUSSION The City Council is being asked to pass a revised resolution recognizing the changes in the lease and contract for deed from the previous approval. The purchase will continue to be structured as a contract for deed with the first payment of $100,000 upon closing and the second payment due on June 30, 2006. The second payment will include 6% interest. The funds will come from the General Fund. The City will take full ownership of the property on June 2006 but will allow the property owner to lease back the property for one more year. The lease will be on a month to month basis so the Olson's will not be held to leasing the property for the entire year, should their plans change. RECOMMENDATION Approve the attached draft resolution. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2005 A RESOLUTION APPROVING THE PURCHASE OF 3205 143 STREET WEST FOR DOWNTOWN ROSEMOUNT REDEVELOPMENT WHEREAS, the City Council of the City of Rosemount intends to purchase residential property owned by Jeffrey A Olsen and Claire M. Olsen located at 3205 143 Street West, Rosemount, legally described as: Lot 200, Block 27, Auditors Subdivision No. 1. WHEREAS, the City has been discussing acquisition as part of the Downtown Redevelopment process; and WHEREAS, the property does not meet the blight test and therefore is not included in the Downtown/Brockway TIF District; and WHEREAS, the land use on the property as a commercial daycare is a non conforming use; and WHEREAS, the property serves as a gateway to Rosemount's Downtown; and WHEREAS, the City's purchase permits removal of a non conformity; and WHEREAS, the City will use the property as open space and as part of the Downtown redevelopment, and WHEREAS, the City will purchase the property as contract for deed to permit the owner to use the property until June, 2006; and WHEREAS, the City will use general fund reserves to pay for the purchase of the property; and WHEREAS, the Rosemount Port Authority passed a resolution in support of the City's acquisition of the property on March 1, 2005, and. WHEREAS, the City Council approved the purchase on March 15, 2005, and WHEREAS, the property owner has requested that the lease period be extended one year, until June 2007, and WHEREAS, the property owner agrees to pay $1000 /month in rent from July 2006 until June 2007 along with all property taxes, and WHEREAS, the lease and contract for deed have been revised to reflect the new lease arrangement. NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby approves the purchase of residential property located at 3205 143` Street West, Rosemount, subject to: 1. Execution of the Contract for Deed by and between the City of Rosemount and Jeffrey A. Olsen and Claire M. Olsen. 2. Execution of the Lease Buy Back Agreement by and between the City of Rosemount and Jeffrey A. Olsen and Claire M. Olsen. ADOPTED this 15th day of March, 2005 by the City Council of the City of Rosemount. ATTEST: Linda Jentink, City Clerk Motion by: Second by: Voted in favor: Voted against: Member absent: William H. Droste, Mayor 2. RESOLUTION 2005