Agenda - Planning Commission - 09/01/2016

Home

$10,000 (2%), all to become hard after inspection period. (4)Inspection Period February 28, 2017 (5)Extension Option If the buyer decides to extend the PA,they will be required to place $5,000 of additional non-refundable dollars in earnest for each 60 day extension. (6) Construction Deadline 01/01/2018 Phase 1 (72,000 sf)and 01/01/2019 (51,840). (7)Removal of Materials The subject property includes stockpiles of con-bit and a large quantity of retaining wall blocks(concrete blocks). The City shall retain ownership of said items,and will remove from the subject property by 90 days after the Effective Date. Funding Source: NA Recommendation: EDA/Council(not Planning Commission) (1) Staff will suggest the attached purchase agreement be discussed in closed session(sale price,and deal terms). Staff will send the EDA a closed session MEMO before the EDA meeting. (2) Staff will suggest the EDA invite Platinum Properties Group to apply for a business subsidy($7,500). This will require the Platinum Property Group pro-forma to be audited/underwritten by Ehlers&Associates. This will tell the City if the requested subsidy can be justified(mathematically and from a market perspective). It should be noted, because this is a spec building, it will not meet job goals outlined in the City's business subsidy policy. However, the policy specifically indicates exceptions can be made, on a case-by-case basis. Due to the significance of this development(estimated at about$9M), the large amount of property taxes that will be paid by this development(about$86K total per year, or), the ancillary effects it will have on economic development for the City of Ramsey(BR&E and business recruitment), recruiting a destination user nearby The COR (will help generate traffic for other desired users in The COR), and the recruitment of a Adrenaline Sports Facility (services desirable by many organizations/residents), staff believes it would be reasonable to consider this project an exception to the job requirements outlined in the City's Business Subsidy Policy. Action: PURPOSE (Planning Commission) The purpose of this case is to provide the Planning Commission an opportunity to review the attach concept development proposal(please see Platinum MEMO).It is standard practice--when the City reviews a purchase agreement for the sale of city owned land--to allow the Planning Commission an opportunity to provide initial feedback on the site concept. [NOTE: this case was copied from the EDA Agenda] PURPOSE (EDA/Council) Consider the attached purchase agreement(purchase offer of$500,000) from Platinum Properties Group,INC. for a 9.3-acre City owned property located just south of Vision Ease Lens for a 123,840 square foot industrial project. Attachments Platinum MEMO REF MAP