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Council approves $240,600 payoff of land contract from 250 fund, citing no prepayment penalty
Summary
Council approved Resolution 25-12 to prepay a land contract for 22 acres, paying $240,600 from the city's 250 fund (proceeds from excess right-of-way land sales to Prairie Island); staff said two annual payments had been made and that the contract contains no prepayment penalty.
The council approved Resolution 25-12 to prepay a land contract covering 22 acres, authorizing a one-time payoff of $240,600 from the 250 fund.
City staff explained the city entered the contract for the parcel in 2024, has already made two payments (for 2024 and 2025), and that the contract includes no prepayment penalty. Staff said the 250 fund balance (proceeds from prior excess right-of-way land sales to Prairie Island) will be used to make the payoff and that the action completes the city's contractual obligation to the seller identified in the packet as Walter.
Why this matters: prepaying the contract consolidates the city's obligations and releases the property from the payment schedule noted in the contract; staff emphasized there is no prepayment fee and that the transaction was to be funded from funds already received for right-of-way sales.
