Agenda - Economic Development Authority - 08/14/2014

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(10) The Falls Cafe Staff has received plans for a new restaurant user to occupy the old Falls Cafe site —the restaurant is scheduled to be opened by the end of summer. This restaurant will provide baked goods, sandwiches, liquor, beer, wine, various goods and coffee. The site will soon have a drive -thru lane. (11) PSD, LLC On July 22n the Ramsey HRA authorized entering into a purchase agreement with PSD, LLC for the development of roughly 14 acres in The COR. The project will consist of a two phase apartment development project and a possible hotel complex (may be an office /retail complex). It is anticipated that up to 230 apartments units will be built at the end of the project. This land sale is expected to close on the 15 of September. Key points follow: • Location is identified in the attached "Subject Property" document • Offer of $1,897,089.60 (for 608,533.2 square feet equating to $3.12 per square foot) in cash at closing with $50,000 earnest money at agreement execution • Offer is consistent with pricing schedule approved by the City of Ramsey and Ramsey HRA; higher end of deal range pricing • Closing September 15t cash in hand at closing • CBRE, the City and HRA's preferred broker, commission at 5% equates to $94,854.48 • This is a land sale transaction only; no assistance is being requested at this time (note: if assistance is requested at a future date, that request is presented to and decided upon by the Council at that time) • PSD will be partnering with another private developer to develop these parcels; an apartment complex (up to 230 units over time) is slated for the parcel up against The Draw with the southern parcel product TBD (possibly hotel, office /retail, etc.) • Tax estimate (estimated by Anoka County) for this vacant land owned by a taxable entity at: $75,300 annually • Tax estimate (estimated by Anoka County) for this land once fully improved at: $510,200 annually • Tax base generated by this proposed development falls under TIF 14, meaning the majority of generated taxes (roughly 90 %) are dedicated back to the TIF 14 fund and the remainder (roughly 10 %) are dedicated back to the City's General Fund • Construction start is pending with a desired start in Fall 2014 or Spring 2015 • Road (between Outlot A and B) to be constructed by PSD to City of Ramsey specifications. This road will then be handed over to the City of Ramsey for maintenance, etc. • Re- platting to be done by PSD to meet their specifications • Zoning related items regarding parking structures /floor area ratio (density -- could drive need for parking structure) still need to be determined; PSD has indicated interest in structured parking as it relates to the master COR plan -- these items to be reviewed at time of site plan submittal