Sponsor: Property Management
Title
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Reinstatement of and First Amendment to Purchase Agreement with Northern States Power Company for Sale of Vacant Regional Railroad Authority Parcels
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Recommendation
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1. Approve the reinstatement of and amendment to the purchase agreement with Northern State Power Company, 414 Nicollet Mall, 6th floor, Minneapolis, MN 55401, to revive the agreement and extend the inspection period to February 28, 2025.
2. Authorize the Chair to execute the revival of and amendment to the purchase agreement.
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Background and Rationale
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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 the 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.
A purchase agreement with Northern State Power Company for the two noted parcels was executed on August 13, 2024, however the inspection period provided for in the agreement lapsed without Northern State Power Company providing a requisite notice of acceptance of the property, which resulted in the automatic termination of the agreement. Subsequently, the parties have mutually agreed to reinstate the agreement. The amendment will reinstate the agreement and extend the inspection period. Upon receipt of the notice of acceptance, the transaction will occur within 30 days.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The racial equity impact of this action is unknown.
Community Participation Level and Impact
There is no community participation associated with this amendment.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The ultimate disposition of the parcels will result in $315,000 of revenue. The net revenue at closing will be received in the Ramsey County Regional Railroad Authority tax levy fund.
Last Previous Action
On August 13, 2024, the Ramsey County Regional Rail Authority approved of the disposition of the two vacant parcels, and approved and executed the purchase agreement with Northern States Power Company (R2024-014).
Attachments
1. Reinstatement of and First Amendment to Purchase Agreement