Agenda - Economic Development Authority - 12/11/2014

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lour 1111.1siion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. Economic Development Authority (EDA) Meeting Date: 12/11/2014 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 3. Title: [EXAMPLE CASE] Considers Offers to Purchase City Owned Property Located at 15153 Nowthen Boulevard (portions of case may be closed to the public) Purpose/Background: Example Case: No Action Requested With the dissolution of the Ramsey HRA, the EDA will assume the role of facilitating the sale of all City -owned land (beyond traditional ED projects, including traditional residential developments). For the EDA, the purpose of this case is to orientate the EDA with this potential project. It is possible this project will be discussed by the EDA in the future. Purpose: Consider two separate offers to purchase City owned property located at 15153 Nowthen Boulevard. NOTE: portions of this case may be closed to the public. Staff will recommend financial details of both offers be disclosed and discussed in closed session. Staff will provide a feasibility analysis in closed session. Background (site): The City owns a 20.5 acre parcel of land located at 15153 Nowthen Boulevard. This site is currently located in the Public/Quasi Public Zoning District and is the temporary home of the City's Fire Station #2. The City is in the process of processing a Zoning Amendment this property from the Public/Quasi Public District to the R-1 Residential (MUSA) District. Additionally, the City is in the process of designing a new, permanent, location for Fire Station #2. The City will take action on a potential new Fire Station #2 in February 2015 (i.e. the Council will consider letting bids). The new location of Fire Station #2 is proposed for just northeast of this site. This site is currently being listed by CBRE, the City's real estate broker. This property is currently listed at $40,000 per acre (about $820,000 total asking price). Development of this site for single family residential will require significant building demolition and site clean up costs (estimated at about $150,000). Background (offers): The City has received two offers to develop this property. Staff considers both offers to be informal and in concept -format (sometimes referred to as a letter of intent LOI). The purpose of this case is to receive general/preliminary direction from the Council. Staff would like to identify/recognize that additional negotiation of terms, conditions, and site schematics is required before final direction can be provided by the Council (i.e. before a purchase agreement can be considered). This process may require 1-2 more Council discussions. Both offers include a two -phased approach. The buyer would purchase all developable land now (about 14 acres of the 20.5 total acres); and lock -in a second purchase agreement for the remaining land (about 6.5 acres). The second purchase would take place when the old municipal center site can be vacated and cleaned up (estimated for summer 2016). Both offers require the City to deliver to the buyer a "clean site" for the second phase; which means: removal