City council actions
By Kari VanDerVeen
10/19 Meeting Parking Ramps: The City Council agreed to knock $1.1 million off the sale price of several city-owned parking ramps in order to offset the cost of repairs needed for one of the ramps.
Alatus Partners LLC agreed in July to purchase six city-owned parking ramps for just over $69 million. The city is moving forward with the sale of five of those ramps to Alatus — it is still working out the details of the sale of its leasehold interest on the Federal Courthouse Municipal Ramp 333 3rd Ave. S. — and expects to have the deal concerning those five finalized by the end of October.
The city agreed to adjust the sale price of the five ramps after Alatus determined during its due diligence period that costly repairs are needed to Centre Village Municipal Ramp, 700 5th Ave. S. Alatus also noted that the city miscounted the number of parking stalls it was purchasing, and a joint recount with city officials confirmed that there are 35 fewer stalls in the sale package than the city had originally calculated.The city will credit Alatus $1.1 million, bringing the sale price of the five ramps — which, in addition to Centre Village Municipal Ramp include the Downtown East Municipal Ramp, 425 Park Ave. S.; Gateway Municipal Ramp, 400 S. 3rd St.; Loring Municipal Ramp, 1330 Nicollet Mall; and Seven Corners Municipal Ramp, 1504 Washington Ave. S. — down to a little more than $65 million.
The City Council agreed in July to sell a total of eight city-owned parking ramps to three different buyers. In addition to the ramps Alatus is purchasing, St. Anthony Ramp LLC has agreed to pay a little more than $2.5 million for the St. Anthony Ramp, 210 2nd Ave. SE.; and the Guthrie Theater Foundation has agreed to pay $16.5 million for the Riverfront Ramp, 212 9th Ave. S. If all of the sales move forward as expected, the city will receive more than $87 million for the eight ramps.On average, the ramps were collectively expected to lose about $690,000 annually in upcoming years, according to a city report issued this summer. In addition to the sale proceeds, if the ramps are sold, the city will also collect annual property taxes of roughly $800,000 from them.