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
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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