08-08-05 - Laserfiche WebLink

Home Browse Search

~ ~HILLS . MEMORANDUM DATE: August 1,2005 Agenda Item 6.B TO: Mayor and City Council Michelle Wolfe, City Administrator FROM: Scott Clark, Community Development Director SUBJECT: City HalllPublic Works Site Purchase Agreement Discussion Introduction On July 18, 2005, the City Council voted three to two to approvc the Planned Unit Development and related documents for the Royal Oaks condominium office park located at the old City Hall site at the southwestern quadrant of Hamline Avenue and Highway 96. Since the Planned Unit Development required four votes to affirm, the project was denied. Due to this action staff is seeking direction from the Council on how to proceed with the disposal of the property. There appears to be three general options: . 1) Do nothing for a selected period of time. 2) Renegotiate with Royal Oaks regarding a new purchase agreement. 3) Start a new sales process which could include a request for proposal, marketing by signage and/or contacting selected developer/brokers as appropriate. Status of Existinl! Purchase Al!reement According to the City Attorney the "existing" purchase agreement between Royal Oaks and the City was to be acted on by July 27,2005. Royal Oaks' options were two fold: 1) Formally terminate the agreement in writing or 2) By default, the City could cause Royal Oaks to purchase the property for the stated purchase price (purchase agreement attachcd). Royal Oaks did not want to effectively do either of these options but instead wants the Council to consider extending the existing agreement (or establishing a new agreement) that would terminate in March, 2006 (see attached). The reason for this date is that based on the City's Zoning Ordinance a new planning proposal can not be submitted for six months. Options Analvsis The following discusses some of the issues associated with the three general options described in . the introduction.