3.1. SR 01-12-2018 Eclty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 3.1
Agenda Section Meeting Date Prepared by
General Business January 12, 2018 Amanda Othoudt,EDD
Item Description Reviewed by
Resolution for Acquisition and Conveyance of Cal Portner, City Administrator
Certain Property Between City of Elk River and Reviewed by
New Resources,LLC
Action Requested
Adopt,by motion, a resolution for the acquisition and conveyance of certain property between the City
of Elk River and New Resources,LLC.
Background/Discussion
Staff has been working with Beaudry Oil Company in the development of a new truck shop facility along
Proctor Avenue.
On July 3, 2017, the city established Tax Increment Financing (Redevelopment) District No. 24 which
includes the development property.
As part of this project, the city purchased three properties to the north of the proposed project with the
intention to convey a portion of this property at no cost to the developer in exchange for property owned
by the developer to the south of the proposed project at no cost to the city. The exchange of property
will be in the form of quit claim deeds.
The properties are being exchanged for fair market value. As such, the transaction described in this
agreement does not constitute a business subsidy within the meaning of Minnesota Statutes, Sections
116J.993 through 116J.995.
The purchase and development agreement outlines the obligations of both the city and the developer
through the duration of the TIF District.
Financial Impact
Both the developer and the city will each pay half of the closing fees charged by the title company to
close the transaction contemplated by the purchase and development agreement.
Attachments
■ Resolution
■ Purchase and Development Agreement
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAWRE1
City of
Elk City of Elk River
Wver City Council
Resolution 18-02
A Resolution of the City Council of the City of Elk River Approving the
Acquisition and Conveyance of Certain Property and the Execution of
Documents in Connection Therewith
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River,
Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. The City has acquired certain property in the City (the "City's Property") and
intends to convey the City's Property to New Resources, LLC, a Minnesota limited liability
company ("Developer"), in connection with the construction by the Developer of a new
light maintenance facility with related office and storage space,parking, and street access (the
"Project").
1.02. The City proposes to acquire from the Developer certain real property in the
City (the "New Resources Property"), in connection with the construction of certain public
improvements (the "Public Improvements").
1.03. The City has caused to be prepared a Real Estate Exchange and
Development Agreement between the City and the Developer (the "Development
Agreement") setting forth the terms and conditions under which the parties will exchange
the City's Property and the New Resources Property and undertake the Project and the
Public Improvements.
Section 2. Approval of Documents.
2.01. The City hereby approves the Development Agreement substantially in
accordance with the terms set forth in the form presented to the City Council, together with
any related documents necessary in connection therewith, including without limitation all
deeds, documents, exhibits, certifications or consents referenced in or attached to the
Development Agreement (collectively, the "Development Documents") and hereby
authorizes the Mayor and City Clerk to negotiate the final terms thereof and, in their
discretion and at such time as they may deem appropriate, to execute the Development
Documents on behalf of the City, and to carry out, on behalf of the City, the City's
obligations thereunder.
2.02. The approval hereby given to the Development Documents includes
approval of such additional details therein as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be necessary NATUREJ
appropriate and approved by legal counsel to the City and by the officers authorized herein
to execute said documents prior to their execution; and said officers are hereby authorized to
approve said changes on behalf of the City. The execution of any instrument by the
appropriate officers of the City herein authorized shall be conclusive evidence of the
approval of such document in accordance with the terms hereof. In the event of absence or
disability of the officers, any of the Development Documents authorized by this Resolution
to be executed may be executed without further act or authorization of the City Council by
any duly designated acting official, or by such other officer or officers of the City Council as,
in the opinion of the City Attorney,may act in their behalf.
Adopted this 12 day of January, 2018.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City NATUREJ
AGREEMENT 2018-01