Agenda - Economic Development Authority - 01/08/2015

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considering two offers. General direction from the Council was to negotiate a Purchase Agreement with NIK Management; and to bring it back in January 2015 for consideration. Background (Land Use) From a land use perspective, the proposed project is set for review by the Ramsey Planning Commission on 01/08 (from a preliminary plan perspective). Results of said meeting will be disclosed during the presentation of this case; or may be viewed online at QCTV.org. Important Note on Access from County Road 5 The existing access to the this site from Nowthen Boulevard will be a major topic to discuss/resolve before the second proposed closing. The existing Nothewn Boulevard access is not owned by the City of Ramsey. Said access has been granted via a temporary easement. When the old municipal center site develops, the City will lose this temporary access easement. Therefore, the City needs to identify a solution to this problem. Attached to this case are access alternatives. This item will be discussed at a January 08 public open house and with the Planning Commission. Additionally, staff is working with affected property owners and Anoka County to validate alternatives. With proper public input, Planning Commission input, property owner input, and the feasibility of alternatives in -hand, Staff will bring this open item to the City Council for direction. This item does not need to be resolved before signing this agreement. It will need to be resolved before the second closing. Notification: NA Observations/Alternatives: Observations Listed below are highlights of the proposed Purchase Agreement with NIK Management: 1. $929,000 total offer price ($41,500 per acre for phase one and $43,500 for phase two). NOTE: the total listing price for this property was $860,000 ($40,000 per acre). 2. The proposed deal includes a two -phased closing (first closing on 14 acres in May of 2015 and second closing on 7.5 acres in May of 2016). 3. The second closing requires the City to deliver a "construction -ready" site. Meaning, removal of existing structures, improvements (parking, driveways, etc.), capping wells, removal of septic tanks (if needed), etc. This work is estimated to cost the City about $150,000. 4. The second closing will require implementation of a "new/re-aligned" access to this site from Nowthen Boulevard. This will affect the City's NET Proceeds. See background section of this case or item 7 below for details. 5. $10,000 of earnest money will be put down on the project (1.07%). Earnest money is scheduled to be utilized 50% at closing one and 50% at closing two. 6. Major contingencies include site plan, plat, development agreement, and financing approvals before closing. 7. NET PROCEEDS: depending on several unknowns, City staff is estimating NET Proceeds ranging from $236,887 to $511,887 for the proposed deal. Attached to this case is a feasibility analysis. NOTE: the City may be able to significantly improve NET Proceeds by utilizing County HRA dollars to offset required City redevelopment expenses. This item is discussed in the feasibility analysis. Alternatives (recommend to the City Council) Accept Staff believes the proposed offer is fair for both parities and recommends the City Council consider accepting. The proposed offer meets the City's asking sale price. The proposed terms and timelines are reasonable to staff, CBRE and the City Attorney. The proposed project accomplishes multiple City goals: selling surplus city owned land, getting tax-exempt land back on the tax -rolls, attaining land proceeds to help offset the cost of Fire Station #2, and help perpetuate the initiative to relocate Fire Station #2. Revise The City Council may be interested in amending a number of terms included in this agreement before considering