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Anchor Tenant,Adrenaline Sports Center <br /> Adrenaline Sports Center began operations in Coon Rapids about eight years ago,under the name Gold Kick. Four <br /> years ago,it was converted to Adrenaline Sports Center. Today,Adrenaline leases 25,000 square feet of space. The <br /> primary use of space is soccer training/practice. Secondary users of the Adrenaline Sports Center include cross-fit <br /> and baseball training/battig practice. Lastly, on occasion,Adrenaline is used for various events. Today, <br /> Adrenaline attracts an estimated 4,000-5,000 families to their facility on an annual basis. <br /> Moving forward,Adrenaline Sports Center needs to expand. They would like to move to a location that provides <br /> 40,000 square feet of space (60%increase from 25,000 square feet),has room for future expansion, and can be <br /> ready by summer 2017. Staff began working with Adrenaline in June. At the same time, staff was working with two <br /> developers interested in purchasing the subject property. A connection was made by staff,which brings us to this <br /> proposed development. Adrenaline Sports Center is the proposed anchor tenant to the proposed 123,840 square foot <br /> Platinum Properties Group industrial development. <br /> Through conversations with staff,Adrenaline Sports Center has indicated a desire to make strong connections/ <br /> partnerships with the local community (schools, city,non-profits,business parks,residents, etc.). <br /> Proposed Project <br /> Platinum Properties is proposing a two-building 123,840 square foot industrial development. Outside of Adrenaline <br /> Sports Center,this development is being constructed on spec (speculation). One building is 51,840 square feet, and <br /> the other is 72,000 square feet.Platinum desires to construct the entire project in 2017 (note: staff needs to confirm <br /> this item). In order to keep rental rates competitive for Adrenaline Sports Center(a private and quasi public <br /> operation),and to take on the risk of building a spec project,Platinum Properties is asking a land write-down <br /> (reduction in the land purchase price). Platinum Properties Group is proposing a land transaction cost of$500,000. <br /> Please see attached MEMO for additional details. <br /> Notification: <br /> NA <br /> Observations/Alternatives: <br /> OBSERVATIONS <br /> Listed below are terms/conditions/observations related to the attached purchase agreement that staff considers <br /> important to highlight for potential discussion. <br /> (1)Policy Compliance <br /> This project is not requesting Tax Increment Financing(TIF),Tax Abatement, the City's Revolving Loan <br /> Fund, or State DEED Programs. However,the buyer is making an offer of$1.23 psf;which is below the <br /> City's standard asking prices for industrial land($1.75-$2.50 psf). This item should be discussed by the EDA <br /> in closed session. The attached PA is simply an edited version of the City's adopted"template PA." <br /> Therefore, appears to be in compliance with City's Land Sale Policies. <br /> (2) Offer Price <br /> $1.23 per square foot or$500,000. <br /> (3)Earnest Money <br /> $10,000(2%),all to become hard after inspection period. <br /> (4)Inspection Period <br /> February 28,2017 <br /> (5)Extension Option <br /> If the buyer decides to extend the PA, they will be required to place $5,000 of additional non-refundable <br />