Laserfiche WebLink
ACQUISITION OF LOT 1, BLOCK 2i <br /> A.E.C. ENERGY PARK <br /> <br />Sean M. Sullivan, Economic Development / TIF Specialist <br /> James E. Norman, City Administrator <br /> <br />CASE <br /> <br />Background: <br /> <br />The City currently is a party in a Development Agreement with Direct Enclosures and <br />Connexus Energy that was executed July 21st, 1999. The development agreement is in <br />effect until July 31, 2006. The terms of this agreement state that the above-described <br />property needs to generate at least $13,500 in Tax. Increment per year. <br /> <br />Recently, Direct Enclosures has put the building up for sale and has located a buyer. <br />Class C Components, a business from Brooklyn Park would like to purchase the property. <br />The holding company that wishes to purchase the property and building is North <br />Suburban Management, LLC, There are other parties interested in the building and a sale <br />to a specific party has not been finalized. <br /> <br />The development agreement and the terms of the agreement must be transferred to the <br />new entity to guarantee that the City receives the increment necessary to fulfill the <br />financial obligations of the development agreement. An Assumption Agreement <br />executed by Com~exus, Direct Enclosures, the City of Ramsey and the potential buyer <br />would effectively transfer the development agreement to the new business. <br /> <br />The City Attorney and Staff obtain a certificate of good standing and adequate financial <br />information from the prospective buyer to insure that the business is solvent and is stable <br />from a business standpoint. This is done to assure the City Council that the business ~s <br />solid and that there shouldn't be· any foreseeable problems with performance under the <br />development agreement. The closing for the proposed sale of the property is unclear but <br />staff is seeking approval of the sale of the property and building and to enter into an <br />assumption agreement with any qualifying business. <br /> <br />Council Action: <br /> <br />Direct staff to enter into an assumption agreement to transfer DeveloPment Agreement <br />from Direct Enclosures to a qualifying busineSs. <br /> <br />Reviewed by: <br />City Attorney <br /> <br />CC: 11/12/02 <br /> <br />-229- <br /> <br /> <br />