2018.03.27 CC Minutes - Laserfiche WebLink

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March 27, 201. IT Depart hent in the past and in tum had overworked these individuals. She explained she fully supported the new IT Department structure and the hiring of two new employees. _ City Manager Lotter commented on the recent hiring attempt conducted by the City and noted the individual did not make it through the background check. He stated this was unfortunate but allowed staffmore time to consider how to restructure the IT Department. Councilmember Burg believed the proposed changes for the IT Department were well overdue. She explained she supported the City moving forward with the proposed changes. 4 Ayes, 0 Nays -Motion Carried 2. Consider Authori-ration for the Mayor and City Manager to Execute a Purchase Agreement for 629 Old Highway 8 NW. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to authorize the Mayor and City Manager to enter into a Purchase Agreement with the Mateffy family for the purchase of real property located at 629 Old Highway 8 NW. City Manager Lotter indicated Assistant Community Assets and Development/Planr,ing Director Gundlach would be presenting this item to the Council. Assistant Community Assets and Development/Plannmg Director Gundlach explained the property owner contacted City staff in September/October of 2017 to inquire if the City would be interested in purchasing his property at 629 Old Highway 8 NW. The property was not on the market for sale at this time. The property owner was aware the City had recently purchased the property at 701 8th Avenue NW and offered his property to the City, should the City feel its acquisition would position the City better for future redevelopment efforts within this corridor of Old Highway 8 NW. City staff asked the property owner for additional time to inquire with the Council on their interest in acquiring this parcel and Les Mateffy, representing the Mateffy family, agreed. Assistant Community Assets and Developnient/ftuining Director Gundlach commented during the January 6, 2018 City Council teambuilding retreat, the Council expressed interest in acquiring this parcel through discussions related to the Korean Church acquisition and future redevelopment plans for Old Highway 8 NW. The acquisition would assist the City in providing expanded housing opportunities, which has been identified as a need from our residents based on results of a 2017 Citizen Survey, as well as community engagement efforts related to the ongoing Comprehensive Plan update. Assistant Community Assets and DevelopmentlPlanning Director Gundlach reported staff reconnected with the Mateffy family early in 2018, who remained interested in selling the City their property in an off -market sale. This item was discussed again at a Council work session on February 6, 2018, where the Council directed staff to negotiate a purchase under agreed-upon terms that would be brought back for formal consideration at a regular City Council meeting. Since the February 6, 2018 work session with Council, staff worked with the Mateffy family on the Purchase Agreement. All discussions have occurred with Les Mateffy, who is representing his family in the sale. The Mateffy's have agreed to a purchase price of $450,000. Ramsey County currently has the market value for tax purposes set at $500,000. Other terms of the purchase include: • The rental unit must be vacated prior to the City closing on the property and the purchase price includes any eligible relocation assistance that may apply. • The City has 60 days from the effective date of the Purchase Agreement to conduct due diligence, including review of the title, completion of a Phase I Environmental Site Assessment, soil borings, and a pre -demolition assessment. Should the results of any of Page 4 of 8 2. Consider AtidkiiMion for the Mayor and City Manager to Execute a Purchase Agrwnicnt for 629 01d Highway 8 NW.