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9a. Attachment B Date: March 23, 2015 Item No.: 15.b Department Approval City Manager Approval Item Description: Dale Street Fire Station Site Redevelopment 1 At its February 23, 2015 meeting, the City Council approved a motion to ask the RHRA if it 2 would be willing to sell the RHRA owned property to the City of Roseville in order to facilitate 3 quicker response time since the City Council meets several times every month and the deal 4 negotiation process with the developer has been very fluid. 5 On February 27, 2015, the RHRA held a special meeting to discuss the City’s request and 6 offered a motion to authorize HRA staff and the HRA attorney to explore the correct legal 7 process, begin negotiatons with the City and prepare the required documents necessary to sell the 8 HRA owned parcels to the City. In addition, the RHRA indicated that its minimum purchase 9 price for the land would need to be sufficient to replace all the funds that the RHRA has 10 expended on the project and the transaction needs to relieve the RHRA of any further liability 11 associated with the development. 12 Land Purchase 13 HRA staff has indicated that the total of all expenditures to date by the RHRA is $689,940.62. 14 This expenditure amount includes a purchase price credit that was obtained because Jeanne 15 Kelsey is a licensed broker and therefore the RHRA was able to capture the full $14,059.02 real 16 estate brokerage commission from the sellers. 17 The expenditures to date are only out of pocket expenses by the RHRA for the CDI process, 18 lawn care, attorney fees, traffic study, property taxes, appraisals, demolition, environmental, 19 securing the building and the reduced purchase price. No staff time, accounting costs, overhead 20 or other indirect costs are included in the current expenditures amount. The total does include 21 the credits that were received from salvage and Greater Metropolitan Housing Corporation’s 22 (GMHC) escrow. 23 In order to complete the transaction, it is anticipated that there will be additional costs incurred 24 by the RHRA for preparation and review of closing documents as well as the closing costs. It is 25 estimated that the amount of these future RHRA expenses will be approximately $5,000 – 7,000. 26 Although the purchase of the property is from a related governmental entity, it is standard 27 procedure that the City Council go into a closed session to discuss any contractual specifics. 28 As with any City land transaction, this proposed purchase will need to be referred to the Planning 29 Commission for its determination that the transaction is in conformance with the Comprehensive 30 Plan. 31 32 Page 1 of 3