Title
Authorizing the City to enter into an Assignment Agreement and Use Agreement (which include indemnification language, and other documents as necessary) to close on the purchase of the property at 60 West Sycamore Street to house the Department of Public Works Solid Waste and Recycle Operations.
Body
WHEREAS, the City of Saint Paul ("City"), acting through its Department of Public Works, seeks to purchase the commercial property (facility and land) located at 60 West Sycamore Street in Saint Paul (the "Property") for the department’s Solid Waste and Recycling Operations; and
WHEREAS, the Property will house the programming, customer service and collection staff, equipment and vehicles for the Solid Waste and Recycling Operations, and will also include an education center, expanded recycling drop off center, and a year-round free re-use center; and
WHEREAS, the purchase of the Property aligns with mayoral priorities as presented in the 2024 State of Our City Address and with the Garbage Advisory Committee Report recommending the City provide: collection services to 10% of organized collection properties; cart inventory maintenance duties; customer service; and billing functions; and
WHEREAS, the owner of the Property, P&P Holdings, LLP (“P&P”), and the City intend to close on the sale of the Property pursuant to a Purchase and Sale Agreement executed July 27, 2024; and
WHEREAS, P&P currently leases the entirety of the Property to Transaxle LLC (“Transaxle”), pursuant to a master lease agreement (“Master Lease”); and
WHEREAS, CT Holdings, Inc. (“CT Holdings”), an affiliate of P&P, subleases part of the Property from Transaxle, pursuant to a sublease agreement (“Sublease”); and
WHEREAS, concurrent with the closing on the sale and purchase of the Property, P&P wishes to assign its interest as landlord under the Master Lease to the City pursuant to an assignment of master lease and sublease agreement (“Assignment Agreement”), attached hereto as Exhibit A; and
WHEREAS, also concurrent with the closing on the sale and purchase of the Property, CT Holdings, Inc. wishes to convey its interest as sublessee under the Sublease to the City pursuant to a use agreement (“Use Agreement”), attached hereto as Exhibit B; and
WHEREAS, the City wishes to assume the interests, rights and obligations of the Assignment Agreement and Use Agreement; and
WHEREAS, upon closing on the sale and purchase of the Property, the City will own the Property and will become landlord under the Master Lease, and will become sublessee under the Sublease with Transaxle; and
WHEREAS, the City, acting through its Office of Financial Services Real Estate Section, is now seeking authorization to enter into the Assignment Agreement and Use Agreement, both of which contain provisions requiring City indemnification; now, therefore, be it
RESOLVED, by the City Council that the proper City officials are hereby authorized and directed to execute the Assignment Agreement and Use Agreement, which include indemnification language, in a form and content substantially as set forth in Exhibit A and Exhibit B, and to execute any additional documents as may be required to close on the sale and purchase of the Property.