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HRA Regular Session 5. 1. Meeting Date: 08/27/2013 Submitted For: Kurt Ulrich By: Jo Thieling, Administrative Services Title: Discuss SuperAmerica Properties Information Background: In 2012, the City approved entering into the purchase of two sites from the City, one off of Armstrong, just to the east of McDonalds and one on Ramsey Blvd, just south (accross Sunwood) from the new Allina Clinic. While the City has a non - binding letter of intent from the developer, Super America never consented to a formal purchase agreement due to their apparent inability to get corporate funding. Attempts to get a committment from Super America over the past month have been unsuccessful. The last correspondence from early July indicated that the developer was still interested in purchasing the two parcels (one off Armstrong and one off Ramsey Blvd.) but needed to get corporate approval of the capital projects funding. Since that time, the developer has indicated (through the building department) that their site plan application is no longer active. We can conclude that the Super America developer is unable to proceed to a timely closing on these properties. Observations /Alternatives: Staff is of the opinion that the City has fullfilled any and all informal good faith business obligations to keep these properties available for Super America. Given this situation, and the enhanced status of the Armstrong interchange funding, it is recommended that the HRA pursue other convenience store or other users for these sites. The Armstrong site has an approved site plan for a convenience store and would make a logical location for another convenience store such as Kwik Trip, Casey's, Bill's, etc. It is recommended that this type of user be pursued initially for this site. The Ramsey Boulevard site is part of an existing larger parcel, and it is recommended that the HRA re- evaluate for another type use. It is the "gateway" parcel to the business /office area of the COR and the HRA may want to steer the property toward a development more consistent with the bussiness /office area. This may delay a potential short-term sale, but likely would add more value to the area in the long -term. In the alternative, the City could wait until Super America moves forward with financing and hold the sites off the market. If Super America is the preferred user, the City could attempt to negotiate an option agreement to hold the properties for a period of time (for a price to be determined). Recommendation: It is recommended that the City pursue other convenience store users for the Armstrong site, and leave the Ramsey Blvd. site open to take advantage of the larger parcel. Funding Source: Not applicable.