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HRA Regular Session Meeting Date: 10/28/2014 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 5. 1. Information Title: Consider Purchase Agreement for 6710 Highway 10 (PORTIONS OF CASE MAY BE CLOSED TO THE PUBLIC) Purpose/Background: PURPOSE Consider Purchase Agreement (PA) from MDBNK, LLC in the amount of $170,000 for 1.23 acres of Ramsey Housing and Redevelopment (HRA) owned land located at 6710 U.S. Highway 10. BACKGROUND (Prospect/Project) MDBNK, LLC is the legal entity seeking to purchase 6710 U.S. Highway 10. The business interested in operating from this location is All Seasons Garage Door Company. Both entities are owned and operated by the same persons. For the sake of this case write-up, MDBNK, LLC and All Seasons Garage Door are the same entity. All Seasons Garage Door Company (All Seasons) is a residential, commercial, and industrial garage door supplier and installer. Established in 1978, this company was originally located in Columbia Heights. Eventually, All Seasons moved to their current location, the City of Coon Rapids. All Seasons has 23 full time employees; and is expecting 3-5 new employees over the next 24 months. Their current facility is 2,500 square feet and is located off Coon Rapids Boulevard. Over the past decade, All Seasons has experienced significant growth. Their existing site in Coon Rapids is land -locked and not large enough to sustain required future expansions. Additionally, All Seasons would like to move from their existing Coon Rapids location due to various market forces and strategic business decision factors. All Seasons is interested in purchasing a site that can sustain a 5,500 square foot facility, has room for a 5,000 square foot future expansion, and has visibility from U.S. Highway 10. The HRA owned site located at 6710 U.S. Highway 10 has been targeted by All Seasons as a desired location for their new facility and business operations. For more information on this prospect, please see their website: http://www.allseasonsgaragedoor.com/ BACKGROUND (6710 U.S. Highway 10) The HRA owned property located at 6710 U.S. Highway 10 was acquired in May of 2013 from Arnold Holmberg. The previous use of this site was the "XXX Adult Bookstore." This property was purchased by the Ramsey HRA with the intent to remove an existing blighted structure and return the site back to the private sector for redevelopment. 6710 was purchased at a price of $361,100. The previously existing structure was demolished and all previously existing improvements were removed in August of 2013 at a cost of $23,000. Notable redevelopment factors for this site include (1) the anticipated loss of direct -access to U.S. Highway 10 and (2) the need for conformity to existing stormwater regulations. The HRA began listing this property for sale with CBRE in the spring of 2014. Attached to this case is the CBRE listing and marketing materials. The asking price for this property is $215,000. The HRA (and City Council) developed and adopted a "pricing strategy" for this property in the spring of 2014. The asking price identified by All Seasons in the attached PA is within said approved pricing strategy deal range.