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6. As a result of the update provided in step 5 above, the City Council provide staff the following <br />direction on June 14, 2016: <br />A. Enter into a first-riPht-of refusal aPreement with Pearson Properties, expires 6 months <br />from June 14 (December 14). This will buy the City time to make a decision. This was <br />important because Pearson has indicated they want to sell their property as residential, <br />and that they were receiving interest from buyers. <br />UPDATE: a formal purchase agreement (offer) was made on the Pearson Property on <br />October 01, 2016 for a residential development. The City will now need to decide how to <br />act on their "Right -of -First -Refusal" —we have 45 days (November 16) to offer $1 more <br />than the Buyer's offer price of $1,465,500 ($30,000 per acre). <br />The purchase offer comes from Capstone Homes —a respected local builder —currently <br />working on the Brookfield development. Capstone would like to develop the Pearson <br />property into a mix of residential offerings. It should be noted, the buyer is not only <br />purchasing the proposed Pearson business park parcels (48 acres), this purchase includes <br />another Person Property (38.9 acres). See reference map for details. <br />Capstone has indicated their offer on the Pearson property assumes the City will be <br />willing to discuss a cost -share on the arterial infrastructure required for their <br />development (remainder of Bunker & Puma). That discussion is expected to come back <br />to the City in the coming months. <br />Capstone has indicated, they are generally interested in working with the City RE the <br />future business park discussion —and would be interested in finding a mutually beneficial <br />solution. It is staff's understanding, Capstone would be willing to allow a portion of their <br />proposed development, located against the train tracks, become a business park (south <br />side of Pearson site). <br />Staff is concerned about only gaining a portion of the Pearson property (say 15-25 acres) <br />for the future business park —for reasons previously discussion (all Pearson business <br />property would be adjacent to rail). The original plan was to pick up nearly 50 acres of <br />the Person property, much of which was to be set -back from rail. <br />B. Offer up Pearson parcel to private industrial developers, wait and see if we can replace <br />Pearson Properties with a different private sector investor. <br />UPDATE: Staff contacted 18 developers. Four people responded with general interest <br />initially (PSD, Ryan, RJM, and Mortenson). Only PSD followed up with the city, and had <br />follow up discussions/meetings/requests for more information. Ultimately, PSD <br />indicated they are not interested in pursuing purchase of the business park at this time. <br />PSD is working on several other projects at this time. <br />It is staff's perspective, that the larger regional developers didn't have interest in this site <br />due to the location of Ramsey, and the condition of US Highway 10. RE land, they feel <br />that Brooklyn Park, Blaine, and Rogers are better locations for industrial parks. They <br />were not turned off by land price, the city itself, access, development fees, etc. etc. <br />Developers were interested in knowing if the City was willing to provide incentives to <br />end -users. <br />Page 3 of 6 <br />