CCP 01-25-1999 - Laserfiche WebLink

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... ARDEN HILLS EDA SPECIAL MEETING - JANUARY 4,1999 DRAFT 4 funding gaps which need to be filled. There are two options to fill these gaps. The first would be a borrowing approximately $972,367.60 from the PIR Fund, which would be paid back by the ., Ramsey County funds, with interest. Secondly, the City had pledged $1,600,000.00 through the TIF Bond Fund. These two options would provide the $2,572,367.60 needed to complete the project. The City has discussed the concept of funding the cost of the land over time with the Indykiewicz family. Under this scenario, the City could spread the purchase of the property over three years and pay an interest rate of 8% on the outstanding balance. The additional cost to finance this option would be approximately $120,000.00. Staff would prefer the up front funding in order to minimize the interest costs. In speaking with Ramsey County, it is their belief that the project funds would start to be available in the Spring of 1999. At this time it is not clear whether this would be all or a portion of the funds. Mr. Ringwald advised that Staff is recommending the EDA authorize Staff to hire a consultant to conduct a Phase I environmental analysis of the property. Authorize the City Attorney to prepare a purchase agreement for the entire Indykiewicz parcel at 1920 Highway 96, for a price not to exceed $1,150,000.00, excluding dirt and fixtures, subject to the following: I. Stable soils and no environmental contamination. 2. Approval of the purchase agreement by the EDA. e President Probst stated that he is prepared to support the fact that the City would be paying a premium for the parcel. However, he is concerned whether there is still the potential for the project to fall through if the City and the property owners cannot agree on the value of the fixtures and dirt. Mr. Ringwald stated that it is his understanding that the property owner is willing to move forward with the sale of the property and, in the mean time, come to a resolution on the fixtures and dirt. Mr. Ringwald indicated that he has reviewed the property owner's appraisal of the fixtures and he believes they are close to being appropriate. There are some questions regarding the dirt, not only the proposed cost, but also with the amount of dirt on the property. The property owner is estimating the amount of dirt to be approximately 35,000 yards. This amount could be verified through surveying or trucking out of the dirt. President Probst confirmed that, fundamentally, the property owners are looking to walk away from the property and the fixtures and dirt would be the City's responsibility. Mr. Ringwald concurred. He noted one concern the property owner had expressed was the safety and security of the equipment of the property. The property owner prefers that the equipment be the responsibility of the City. .