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Request for Action <br />To <br />Item Number <br />Mayor and Ci T Council <br />8.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />General Business <br />I July 19, 2021 <br />Cal Portner, City Administrator <br />Item Description <br />Reviewed by <br />Pinewood Golf Course Conveyance <br />Peter Beck, City Attorney <br />Reviewed by <br />Andrea McDowell Poehler, City Attorney <br />Action Requested <br />Approve, by resolution, a purchase agreement with Baer Necessities, LLC for the Purchase of Pinewood Golf <br />Course and authorize the execution of all necessary documents by the Mayor, City Administrator and City Clerk. <br />Background/Discussion <br />Baer Necessities, LLC, represented by Jennifer Abrahamson has agreed to purchase and operate Pinewood Golf <br />Course following a Request for Proposals submission that was accepted by the City Council. <br />The Elk River Country Club was notified on March 12, 2021, the city desired to terminate the management <br />agreement with the club. The Elk River Country Club expressed a desire to turn the course over on June 30, <br />2021. <br />On June 7, 2021, the City Council approved a Resolution of Conveyance and Purchase Agreement (Elk River <br />Resolution 21-40) with AJT Holdings, LLC. AJT Holdings did not execute the agreement. On June 30, 2021, the <br />Council terminated Resolution 21-40 and approved an interim management contract with Baer Necessities, LLC. <br />The Council requested the purchaser provide information demonstrating their ability to finance the transaction <br />before approving a resolution of conveyance. <br />Financial Impact <br />The purchaser agrees to pay $420,000 for Pinewood Golf Course. They have provided $5,000.00 in earnest money <br />for the purchase and agree to pay $95,000.00 at closing and the remaining $320,000 in fifteen (15) equal payments <br />annually along with an interest rate of four (4%) percent per annum on August 1" of each year. <br />Mission/Policy/Goal <br />The Elk River Mission <br />Attachments <br />■ Resolution <br />■ Financial Resources Information <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires pi ospei ly. <br />M <br />TUREJ <br />Updated.• August 2020 <br />