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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity. Updated: August 2020 <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To <br />Mayor and City Council <br />Item Number <br />2.0 <br />Agenda Section <br />General Business <br />Meeting Date <br />June 30, 2021 <br />Prepared by <br />Cal Portner, City Administrator <br />Item Description <br />Pinewood Golf Course Conveyance and <br />Interim Management Agreement <br />Reviewed by <br />Peter Beck, City Attorney <br />Reviewed by <br />Andrea McDowell Poehler, City Attorney <br /> <br />Action Requested <br />Approve, by resolution, the termination of Resolution 21-40, a purchase agreement with Baer Necessities, LLC for <br />the Purchase of Pinewood Golf Course, an interim management agreement with Baer Necessities, LLC for <br />Pinewood Golf Course and authorize the execution of a sale of Pinewood Golf Course to Baer Necessities by the <br />Mayor, City Administrator and City Clerk. <br /> <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 /> <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 /> <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. <br /> <br />The purchaser has assembled a new holding group and desires to execute the purchase of the golf course from <br />the city. Because the final sale closing will not happen for a couple of weeks, an interim management agreement <br />will be required to keep the course open. The agreement is very similar to the approved former agreement with <br />the Elk River Country Club in 2019. <br /> <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 agrees 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 1st of each year. <br /> <br />Mission/Policy/Goal <br />The Elk River Mission <br /> <br />Attachments <br /> Resolution <br />