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Economic Development Authority (EDA) Meeting Date: 05/05/2016 Submitted For: Patrick Brama, Administrative Services By: Kathy Schmitz, Administrative Services 4. 3. Title: Coastal Living Purchase Agreement for OUTLOT A of Ramsey Town Center 8th Addition [PORTIONS MAY BE CLOSED TO THE PUBLIC] Purpose/Background: PURPOSE Coastal Living Purchase Agreement for OUTLOT A of Ramsey Town Center 8th Addition [PORTIONS MAY BE CLOSED TO THE PUBLIC] BACKGROUND OUTLOT A History The City of Ramsey purchased The COR (formerly Ramsey Town Center) in 2009 for $6.8M, consisting of 119.26 acres of developable property. As part of the purchase, the City pulled back assessments on all City -owned property, totaling $5.9M. The total cost of the land purchase, including the assessments is $12.7M, which breaks down to $2.44 per square foot. The City purchased The COR with an intent to resurrect the development project and preserve the community's original vision and master plan. The subject property is a 4.38 acre portion of the larger 119.26 acre purchase. Site Information The subject property is roughly 3 acres in size and is zoned COR 4 Neighborhood District (Residential). This site is located on the north end of The COR, commonly known as the North Commons Park area. From a development perspective, this site does have various challenges: (1) shape of this lot is a long narrow u-shape (2) site includes challenging topography, will likely require significant retaining walls (3) located against Bunker Lake Boulevard (County Road 116), which presents desirability challenges for residential users (4) site was visioned for townhomes; neighboring use (on same road) is single family In late 2015, the City Council reviewed the City's inventory of available City -owned land, and the City's corresponding pricing strategy for each property listing. As part of that discussion, staff was asked to further investigate this particular parcel (including identifying development challenges), and consider alternatives on how to attract private sector interest for the listing (potentially including an adjustment to the asking price). A major reason for that direction was due to the known development challenges listed above. The City did adjust down the pricing for this lot at that time. Property Listing The City has officially listed this property with a broker. The City has established an official asking price for this property ($.80 psf or $34,848 per acre). From a market perspective, it's staff experience, that single family residential prices range from $20,000 to $70,000 per acre in Ramsey, depending on a wide variety of factors. Historically, whether it be the City of Ramsey, former owners of Ramsey Town Center, Landform, or CBRE, it has been a challenge to generate any interest in this particular property listing. Coastal Living Land & Homes Coastal Living is a Florida based business. In Minnesota, they are affiliated with a business known as Maximum Real Estate (who is in good standing with the State of Minnesota Secretary of State). Coastal Living is operated by Bill Gleason of New Hope, MN. Mr. Gleason most notable experience was developing the Edinburgh golf course