Agenda - Economic Development Authority - 01/08/2015

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Our Mistionc To work together to reipoiibly grew our comma nityr, and to provide quality, cert-oliBcdwe, and efficient government services. Economic Development Authority (EDA) Meeting Date: 01/08/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 2. Title: Consider Purchase Agreement between NIK Management Group and the City of Ramsey for the Former Municipal Center Site (PORTIONS MAY BE CLOSED) Purpose/Background: Purpose Consider offer from NIK Management Group INC. to purchase City owned property. Background (Site) The City owns a 21.5 acre property 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 currently processing a Zoning Amendment for 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 consider taking action on a potential new Fire Station #2 in January/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 (NIK Management) This Purchase Agreement comes from NIK Management Group (management arm for Bridgeland Development INC). NIK Management Group would act as the developer. NIK Management Group would enter into a LLC Partnership with Rice Creek Building for this specific project. Rice Creek Building's web address is: ricecreekbuildingandremodeling.com. NIK Management Group has completed several projects in Minnesota, Wisconsin and the Dakotas. Attached is background information on NIK Management Group, and their previous projects. Background (Offer) The attached NIK Purchase Agreement includes a two -phased closing approach. The buyer would close a purchase on all developable land in April/May 2015 (about 14 acres of the 20.5 total acres); and close on a second purchase for the remaining land (about 7.5 acres) in May of 2016. The second closing requires the City to deliver "clean site" to the buyer; which means: removal of existing structures and improvements at the sole cost of the City (including capping wells, septic tanks, etc.). The City Attorney has reviewed the attached Purchase Agreement. The observations section of this case includes highlights. Background (Case) This case was reviewed by the City Council on Tuesday, December 09, 2014. At the time, the Council was