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ARDEN HILLS CITY COUNCIL WORK SESSION – MAY 18, 2020 3 consultant to assist them in the negotiations. Following negotiations, a letter of intent (LOI) was reached between the fire department and Bethel, which outlined major points in the deal, and now the department is seeking to move forward with a purchase agreement. The purchase agreement is being brought forward to the Lake Johanna Board of Directors on May 20, 2020 for discussion and potential direction to have the fire chief move forward. The purchase agreement includes a contingency period which is 60 days after the preliminary plat is approved by the City and tentatively scheduled for June Planning Commission and City Council meetings. City Administrator Perrault noted the major points of the Purchase Agreement are: The fire department will purchase the land for $1,350,000. The fire department will pay 1/3 or $325,000, whichever is less, of the cost to relocate the current access road for the Anderson Center. Bethel will request the City waive its traditional park dedication fees for the fire department proposal. City Administrator Perrault said should a purchase agreement be reached, the cities would be responsible for funding their respective portions of the purchase price and road cost. Generally, the cities fund the fire department’s operating and capital costs based on a formula that is used in the budgeting process; for Arden Hills this currently equates to 25%, with Shoreview and North Oaks being responsible for 61% and 14%, respectively. Based on that formula, Arden Hills would be responsible for $417,000 assuming the purchase price and the maximum amount for the road relocation, which could be less depending on final costs (this does not take into account a potential $300,000 contribution from the fire department’s General Fund). City Administrator Perrault explained the fire station is only seeking to acquire the property at this stage, timing of construction for a future station has not been approved by the board of directors or vetted by the three cities. The City represents one vote on the LJFD Board of Directors, there are also representatives from the cities of Shoreview and North Oaks, as well as the fire department. If the board directs the fire department to sign the purchase agreement, then the process would continue and the fire department would continue with their due diligence of the site. If the board directs the fire department to move forward, the next steps would be the Fire Chief sign the purchase agreement, Bethel University would work with the City on a preliminary and final plat to subdivide the northern piece of their property into two parcels and following approval of a lot split and if the fire department and Bethel come to an agreement, the fire department would take ownership over their parcel. Future fire station construction would be at the direction of the board of directors. City Administrator Perrault said some of the major point to be discussed include paying for the land, how the project would be bonded for and how each city would pay back their respective portions of the bond, municipal fees for the City of Arden hills including park dedication, plan review, building permit fees, local WAC and SAC, development approvals, and timing of construction. City Administrator Perrault noted the Budget impact provided does not include any excess fund transfers, land acquisition costs or future fire station costs. Councilmember Holden asked for a better explanation of waiving the park dedication fees.