Sponsor: Property Management
Title
title
Sale of Vacant Regional Railroad Authority Parcels
end
Recommendation
recommendation
1. Approve the disposition of two vacant parcels 322922310002 and 322922310003.
2. Approve the purchase and sale agreement with Northern States Power Company, 414 Nicollet Mall, 6th floor, Minneapolis, MN, 55401, in the amount of $315,000.
3. Authorize the Chair to approve and execute the purchase and sale agreement, settlements, closing documents, and other related real estate documentation associated with the disposition of the parcels in a form approved by the County Attorney’s Office.
4. Authorize the Chair to execute amendments that do not have a financial impact.
end
Background and Rationale
body
Ramsey County Regional Railroad Authority (RCRRA) purchased the Northeast Corridor from Burlington Northern Railroad in 1992. The corridor stretches from Kellogg Boulevard in downtown Saint Paul to Beam Avenue in Maplewood. The property was purchased for future transit use. The property is generally 100 feet wide although it widens and narrows at various points. Near the Bruce Vento Nature Sanctuary, the property is significantly wider than needed for any future transit purposes. RCRRA has no other use of this portion of the property.
Northern States Power Company through their authorized agent Xcel Energy Services, Inc. (Xcel) has an electric substation adjacent to RCRRA vacant parcels, located at 325 Commercial Street, Saint Paul, MN 55106. Xcel’s substation is at capacity in its use of available land. To continue use of the substation and meet the increased demands of downtown customers, Xcel must expand the capacity of the substation following required safety and load requirements.To do so it must expand its footprint. The RCRRA vacant land is the only option for adjacent land.
Xcel requests to purchase the two RCRRA vacant parcels as the only vacant area an expansion can take place. As Ramsey County Regional Railroad Authority has no intentions in developing the vacant parcels it is in the public interest to sell to Xcel for their substation expansion to provide continued electrical service needs to the community.
Property Management has negotiated a purchase agreement with Xcel Energy for the two noted parcels and recommends approval of the agreement. The Bruce Vento trail through this area will remain and is not impacted by the expansion of the Xcel substation. A separate temporary construction easement will be executed to allow Xcel use of additional RCRRA property for completion of the substation expansion.
end
County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The racial equity impact of the sale is unknown.
Community Participation Level and Impact
There is no community engagement for the sale of this parcel.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The disposition of the parcel will result in $315,000 of revenue. In accordance with the terms of the mortgage and State Rail Bank Loan Agreement used for the original corridor purchase, this sale is subject to state approval. The net revenue at closing will be received in the Ramsey County Regional Railroad Authority tax levy fund and contribute to fund balance at year-end.
Last Previous Action
None.
Attachments
1. Purchase and Sale Agreement