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C- <br />0 <br />• <br />Of <br />B�GHT <br />the city that works for you <br />REQUEST FOR COUNCIL <br />CONSIDERATION <br />Report Number <br />Agenda Section <br />Council Meeting Date <br />08-325 <br />VI -4 <br />December 9, 2008 <br />ITEM DESCRIPTION: Consideration of a Purchase and Exchange Agreement by and between the <br />City of New Brighton and MT Properties, Inc. for the Butcher's Spur. <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report Comments attached <br />Recommendation: <br />Staff recommends that the City Council approve the attached Purchase and Exchange Agreement by and <br />between the City of New Brighton and MT Properties, Inc. for the Butcher's Spur and Exchange Parcel. <br />Legislative History: <br />October 9, 2007 City Council approves a Letter of Understanding (LOU) with MT Properties and <br />Minnesota Commercial Railway for the abandonment of the Butcher's Spur and <br />constriction of a team track and southeast wye track. <br />March 2S, 2008 City Council approves an amendment to railroad team track project budget. <br />September 9, 2008 City Council approves the final reimbursement to Minnesota Commercial <br />Railway for the team track project. <br />Financial Impact: <br />Analysis is provided below. <br />Explanation: <br />Since early 2004 staff has been working with MT Properties, Inc. (MT Properties) and Minnesota <br />Commercial Railway Company (Minnesota Commercial) on several railroad projects. These projects <br />have included the abandonment of Butcher's Spur line in the Northwest Quadrant, construction of a <br />functional replacement (also referred to as a "team track"), and the development of a new "southeast <br />wye" connection near 1St Street SW. As the Council is aware, this project has taken a tremendous <br />amount of time due to the complex negotiations with the railroad and the landowner (MT Properties). <br />The October 2007 LOU outlined the basic terms of the deal (i.e. land prices, timing, responsibilities, <br />etc.), but contemplated that one or more subsequent agreements might be needed to formalize the <br />transactions. A copy of the LOU (Attachment 2) is attached for reference purposes. Over the course of <br />the last year, the City has been working on several activities, including: 1) the abandonment of the <br />Butcher's Spur with <br />