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<br />. <br /> <br />~ <br />~HILLS <br /> <br />MEMORANDUM <br /> <br />. <br /> <br />DATE: <br /> <br />March 23, 2005 <br /> <br />Agenda Item 6.B <br /> <br />TO: Mayor and City Council <br />Michelle Wolfe, City Administrator <br /> <br />FROM: Scott Clark, Community Development Director <br /> <br />SUBJECT: Purchase Agreement for Old City Hall Site <br /> <br />Attached is a real estate purchase agreement between the City of Arden Hills and Royal Oaks <br />Realty, Inc. for acquisition of the old City Hall site. The conditions and terms of the agreement <br />reflect past staff and Council discussions. Items to note: <br /> <br />Section 2 Purchase Price- Purchase price of$1,360,000 in addition to payment of <br />$40,000 in park dedication fees (Section 11.4) <br /> <br />Section 6 "AS IS" Condition and Section 7.Covenants and Warranties of Seller- . <br />these two sections memorialize that the purchaser is buying the property in an "as is" <br />condition and acknowledges that they have received all known environmental documents <br />regarding the property. In addition, the buyer is indemnifying the City harmless from the <br />payment of any clean-up costs. <br /> <br />Section 11.3 Development Permits- acknowledges that the seller (the City) is not <br />obligated to issue development permits unless the buyer's development application <br />complies with the City's development regulations. <br /> <br />Section 19 Right to Repurchase- This establishes that the City has the right to <br />repurchase if the buyer has not begun the project by May 1, 2006. <br /> <br />It is staffs understanding that the purchaser (Royal Oaks) is intending to make a planning <br />application in April for a May Planning Commission meeting. Staff is in the process ofpreparing <br />for an April neighborhood meeting. <br /> <br />Staff would also like to note the recent process that got the City to the point of the purchase <br />agreement. In January staff connected four agencies regarding this property (this was done <br />concurrently as negotiation with Royal Oaks had already begun). None of the agencies <br />responded, however, over the past six months the City has had contacts regarding three proposals <br />including a charter school and two small strip shopping centers that would have been half ofthe <br />square footage of the existing proposal. Also, early this year the Council gave consensus to <br />proceed with negotiations and development with Royal Oaks as opposed to stopping the process . <br />and restarting the process with a formal request for proposal. . <br /> <br />l\Earth\Planning\Misc FileslCily Hall-PW Sitelpurchase agreement council action 03 28 05.doc <br />