Agenda - Economic Development Authority - 06/04/2015

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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: 06/04/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 2. Title: Consider Purchase Agreement with WESTCO Properties LLC (portions may be closed to the public) Purpose/Background: PURPOSE Consider purchase agreement (PA) from WESTCO, Properties LLC. for .95 acres of City owned land located within the City's original business park. NOTE: if the EDA wishes, this case may be discussed in closed session. Closed session discussion shall be limited to reviewing the City's pricing strategy and developing a counter-offer (including all pricing and relevant terms). BACKGROUND (Subject Property) The subject property is located at 6590 141st Avenue NW in one of the City's original business parks. This .95 site is located off Basalt Street and Bunker Lake Boulevard and is currently zoned E-1 Employment District. This property was purchased by the City in 2006 for redevelopment purposes for a price of $211,200; at which time, existing improvements were removed. This site has sat vacant, tax exempt, and available for sale since 2006. This property is currently being listed by CBRE, the City's real estate broker for $105,000. Attached to this case is the property listing. BACKGROUND (24 Restore & WESTCO Properties LLC) WESTCO Properties LLC is a holding company based out of Elk River and Managed by Derek West. WESTCO Properties would purchase the subject property. 24 Restore, a business owned by Derek West, would operate from the subject property. Both entities are in good standing with State of Minnesota (business and lien system). 24 Restore was established by Derek West in 1994. Mr. West originally operated from Blaine; and eventually moved his business to Ramsey in 1998 (his hometown). Mr. West began in Ramsey by leasing a 5,000 square foot space, which eventually turned into ownership of said space, which eventually turned into a 10,000 square foot space (his current location at 6615 141st Ave NW). Mr. West is now out of space at his current location and needs to secure additional space for the growth of 24 Restore. He is proposing a new 10,000 square foot facility to be constructed on the Subject Property (City owned property). Mr. West is proposing to both (a) keep his existing facility and (b) construct/operate from the new facility. 24 Restore currently has 29 full time employees. Mr. West expects 10-20 new employees to be added over the next two years. Here is a link to the 24 Restore website: http://24restore.com/ BACKGROUND (Purchase Agreement) Attached to this case is the latest DRAFT version of the purchase offer (Purchase Agreement, PA) from WESTCO Properties LLC. The buyer is represented by Marty Fisher of Premier Commercial Realty.