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ARDEN HILLS CITY COUNCIL - February 25, 200S 3 E. Motion to Adopt Resolution 200S- 15: Resolution Supporting the Minnesota DNR Local Trail Connection Grant Application for the Perry Park Regional Trail Connection F. Motion to Approve the City of Arden Hills Fund Balance Policy as Recommended by the Financial Planning and Analysis Committee G. Motion to Approve Plans and Specifications and Authorize Advertisement for Bid for the Ridgewood-Asbury Rain Garden Improvements MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to approve the Consent Calendar and to authorize execution of all necessary documents contained therein. The motion carried unanimously (4-0). 5. PULLED CONSENT ITEMS 4C. Motion to Approve Earnest Monev Refund to Roval Oaks Realty Councilmember Holmes asked if further discussion regarding this item should be held in a closed session given the attorney-client privilege of the memo from the City Attorney, and added it will be difficult for the City Council to discuss this matter without getting into the memo. Interim City Administrator Willis explained that the refund request on its face is simple in terms of the request on the part of Mr. Eibensteiner, the developer who entered into a purchase agreement with the City in June 2006 for the former City Hall/Public Works site on Highway 96. He stated that the developer, prior to the closing date, informed the City that they were not proceeding with the purchase because of some of the development conditions imposed by the City, and the developer had the right to back out of the purchase. He added the memo from the City Attorney covers the legal issues related to the refund request and if the City Council wishes to discuss this further, it should be discussed in a closed session. Councilmember McClung expressed his concern that there should be some language contained in future purchase agreements that indicates when a developer can pull out of a purchase when the City has already taken action. He noted at the time of the original purchase agreement, the City Council, with the recommendation of the Planning Commission, approved the PUD with a number of conditions, which the developer agreed to. He stated it was his impression that the only thing that changed was that there was an election and the face of the City Council was going to change, and apparently this change in the City Council would provide little or no opportunity for the developer to come back and get the changes he would like. He indicated this situation did not sit well with him and stated the City needs to be more careful in the future. Mayor Harpstead concurred. MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to approve the earnest money refund to Royal Oaks Realty. The motion carried unanimously (4-0).