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2 <br /> <br />Shoreview have one and two, respectively. It should also be noted that as discussions were <br />ongoing with the fire department and the University, the University also moved forward to <br />subdivide their existing Anderson Center parcel creating two additional parcels, one for the <br />proposed fire station and one for other development. The other parcel created is currently being <br />pursued by a private developer for senior housing units. The development of these two lots will <br />not have an impact on the Crepeau Nature Preserve to the south of the Anderson Center. <br /> <br />Following discussions with Bethel University, a tentative agreement was reached between the <br />fire department and the University, and the fire department followed through with a purchase <br />agreement. The purchase agreement allows the fire department a due diligence period through <br />August 21, 2020, and a closing date of no later than September 21, 2020. Following its due <br />diligence, the fire department is intending to move forward with the purchase of the land. The <br />purchase of the land includes two costs: the first being the cost of the land at $1,350,000 and the <br />second being the department’s share of the cost to relocate the existing access road not to exceed <br />$325,000. The fire department is also contributing $300,000 of its General Fund money towards <br />the land acquisition; this leaves the cost to the cities at $1,375,000 ($1,350,000 + $325,000 - <br />$300,000), assuming the road relocation cost comes in at the maximum amount. Traditionally, <br />the three cities, Arden Hills, North Oaks, and Shoreview fund the fire department’s operating <br />and capital expenses. Each City will be responsible for its respective share of the land acquisition <br />and road relocation at the following amounts: Arden Hills $341,000, North Oaks $193,875, and <br />Shoreview $840,125. <br /> <br />In-order to move forward with the land acquisition and outlining future obligations, the attached <br />agreement (see Attachment A) will need to be approved by all three cities. The agreement <br />outlines each city’s responsibility with respect to the land acquisition, future construction timing <br />and financing, and language should the fire station not be constructed or if the LJFD ceases to <br />serve the cities. This agreement has been reviewed by the City Attorney, and he is comfortable <br />with the proposed language. The City Council has reviewed this document on multiple <br />occasions. A few of the highlights to the agreement are: <br /> <br />-Section 2.3: One city will bond for the station construction, and the other two cities will <br />annually reimburse the financing city in-accordance with the cost share formula. <br /> <br />-Section 2.5: The construction of the station will have a start date of no later than June 30, 2026, <br />unless otherwise mutually agreed upon. <br /> <br />-Section 2.7: The City of Arden Hills shall have the option to acquire the property and buildings <br />should the LJFD no longer serve the cities and if a suitable successor organization cannot be <br />identified to utilize the property. <br /> <br />-Section 2.8: Should the station construction not move forward, the City will have the option to <br />acquire the land. If the City does not exercise this option and two-thirds of the cities agree to sell <br />the land, then the land will be sold and each city will receive its proportional share of the <br />proceeds. <br /> <br />Prior to construction of the station, a Joint Powers Agreement (JPA) will be needed by the three