CCP 03-08-1999 - Laserfiche WebLink

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Indykiewicz Purchase Agreement Page Two March 8,1999 t . 1. Black Dirt. The purchase agreement in Section 2.3, provides for three methods in which the price for the black dirt will be resolved. The first (Section 2.3, A) allows the Indykiewicz's the ability to sell off the dirt prior to closing. The second (Section 2.3, B) allows the parties to come to a negotiated price for the dirt within 30 days of the closing. Lastly, the third (Section 2.3, C) provides for binding arbitration, if the first two methods fail to achieve positive results. The property owner has stated that the black dirt is worth $210,000.00 (35,000 cubic yards x $6.00/cubic yard). The Staff currently estimates that approximately 20,000 - 30,000 cubic yards of black dirt is in surficial piles. The owner has stated that approximately six (6) feet on black dirt exists below these piles. The Staff, in coordination with Glenn Rehbein Companies and George Indykiewicz, dug several test pits on the property to determine the depth of material. These test pits revealed that two (2) to four (4) feet of material exists below these piles. Therefore, at this point in time the 35,000 cubic yard estimate would appear to be high. The Staff is working with the City Engineer to come up with a revised number on the amount of black dirt on the site. In calling around to find out the market rate for black dirt, Staff found that most black dirt brokers were willing to buy black dirt for $2.00 per cubic yard delivered, not in place. . The in place price ranged from $.50 to $1.00 per cubic yard. Obviously, this is dramatically, less than the $6.00 per cubic yard (in place) placed on it by the Indykiewicz's. 2. Hazardous Substances. The Indykiewicz's in Section 7.9 represent numerous items related to the storage or discharge of hazardous substances. 3. Closing Date. Per Section 8, the closing date is scheduled for Wednesday, March 10, 1999. 4. Possessiou. Per Section 22, the seller is allowed to retain possession of the residential dwelling until, April 7, 1999. Essentially, this allows the Indykiewicz's thirty (30) days to move from the property. Budl!et Impact The Staff previously identified the "Up front funding" of this expenditure as the preferred method. Under the Upfront funding scenario, the City would front 100 percent of the project costs until such time that Ramsey County reimbursed the City. Under this scenario, the Staff would recommend the following the utilization of Funds 704 (TIF Bond proceeds) and if necessary Fund 501 (PIR) for the acquisition. .