Agenda - Council - 09/13/2016 - Laserfiche WebLink

Home

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