8.1. SR 06-07-2021
Request for Action
To Item Number
Mayor and City Council 8.1
Agenda Section Meeting Date Prepared by
General Business June 7, 2021 Cal Portner, City Administrator
Item Description Reviewed by
Conveyance of Pinewood Golf Course to AJT Zack Carlton, Planning Manager
Holdings, LLC
Reviewed by
Andrea McDowell Poehler, City Attorney
Action Requested
Adopt, by motion, a resolution approving the conveyance of Pinewood Golf Course to AJT Holdings, LLC.
Background/Discussion
On March 1, 2021, the City Council accepted a proposal from Jennifer Abrahamson, Trevor Birdsall and
Adrienne Thompson for the purchase of Pinewood Golf Course and directed staff to develop a purchase
agreement. A notice was sent to Elk River Golf Club terminating the management agreement between the city
and the club, effective July 10, 2021. The club agreed to vacate the agreement effective June 30, 2021, to ease the
operational transition to the new property owners.
The Planning Commission reviewed the sale of public property and concurred it is consistent with the
Comprehensive Plan.
The ownership group, AJT Holdings, LLC, has agreed to purchase Pinewood for $420,000 and operate the golf
course for no less than 15 years. They will pay $100,000 in cash at closing and pay the balance over 15 years in 15
equal installments together with an interest rate of 4% per annum.
Because the course has municipal water and sewer services available, the city is required to connect the clubhouse
to city services. Staff will coordinate the connection with the new property owners.
The updated Purchase Agreement was not available at the time the agenda packet was published. It will be
available at the meeting.
Financial Impact
N/A
Mission/Policy/Goal
The Elk River Mission
Attachments
Resolution
Planning Commission Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
Purchase Agreement
ERGC Termination Letter
N:\\Public Bodies\\Agenda Packets\\06-07-2021\\x8.1 sr Conveyance of Pinewood Golf Course to AJT Holdings LLC.docx
Resolution 21-___
A Resolution Approving a Conveyance of Pinewood Golf Course to AJT
Holdings, LLC
WHEREAS, the City of Elk River (“City”) desires to convey the Pinewood Golf Course to AJT
Holdings, LLC pursuant to the terms and legal descriptions provided in the attached Purchase
Agreement, attached hereto as Exhibit A (“Agreement”);
WHEREAS, the Planning Commission has reviewed the proposed conveyance and has determined
that it is consistent with the City’s comprehensive plan;
WHEREAS, the City finds that the sale of Pinewood Golf Course as provided in the Agreement is
in the public’s interest and furthers the aims and purposes of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota, as follows: The Agreement is hereby approved, and the Mayor and City Clerk are
hereby authorized to execute and deliver all necessary documents required under the terms of the
Agreement.
th
Passed and adopted this 7 day of June 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
215771v2
EXHIBIT A
PURCHASE AGREEMENT
215771v2
Of
City of Elk River
Ver Planning Commission
Resolution 21-02
A Resolution of the Planning Commission of the City of Elk River Finding
that the Sale of Property is Consistent with the
Elk River Comprehensive Plan
WHEREAS, The City of Elk River ("City") is negotiating with Jennifer Abrahamson,
Trevor Birdsall, and Adrienne Thompson ("Buyer") for the sale of Pinewood Golf Course —
Outlots A & B, Pinewood ("Property"); and
WHEREAS, the Property is currently operated as a golf course, which is considered a
legal -conforming use and the terms of the sale will require that it continues to be operated as
a golf course; and
WHEREAS, the City of Elk River Comprehensive Plan guides the Property for Open
Space; and
WHEREAS, Minn. Stat. 462.356, subd. 2 requires the Planning Commission to review the
City's proposed disposition of property for consistency with the Comprehensive Municipal
Plan.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Elk River, Minnesota, as follows: The proposed sale of the Property legally described as
Outlots A & B, Pinewood is consistent with the Comprehensive Municipal Plan.
Passed and adopted this 25th day of May 2021.
ATTEST
f
Tina Allar d,'City Clerk
YLJillarson -Vito, PlCsion Chair
111E'R[I 11
NA 1 URE
Elk River Country Club Inc.
DBA Elk River Golf Club
5-19-2021
20015 Elk Lake Rd
Elk River, MN 55330
Mr. Portner :
The official termination date is July 10th per the contract with the City of Elk
River. We will be ending the agreement early on June 30th, 2021 at 6 pm. Elk
River Golf Club will have all inventory and equipment that was not part of the
purchase from the city or has been purchased by the new owners removed at by
6 pm.
Sincerely,
Chris Singer