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in the attached purchase agreement, staff will be recommending CBRE be paid their standard commission on this
<br /> land transaction(5%), due to the fact they specifically recruited this buyer. The 5%commission would be paid
<br /> based on a purchase price of$500,000 (i.e. less the potential incentives).
<br /> Platinum Properties Group INC
<br /> For background information on Platinum Properties Group INC,please see the attached MEMO and check out their
<br /> website: http://platinumproperties.com/. In summary,Platinum is a Minnesota based developer that specializes in
<br /> commercial real estate (office,retail, and industrial).
<br /> Anchor Tenant,Adrenaline Sports Center
<br /> Adrenaline Sports Center began operations in Coon Rapids about eight years ago,under the name Gold Kick
<br /> Soccer. Four years ago,it was converted to Adrenaline Sports Center. Today,Adrenaline leases 25,000 square feet
<br /> of space. The primary use of space is soccer training/practice. Secondary users of the Adrenaline Sports Center
<br /> include cross-fit and baseball training/batting practice. Lastly, on occasion,Adrenaline is used for various events.
<br /> Today,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 and 2018 (note: PA shows
<br /> more conservative timeline). In order to keep rental rates competitive for Adrenaline Sports Center(a private and
<br /> quasi-public operation),and to take on the risk of building a spec project,Platinum Properties is asking a land
<br /> write-down(reduction in the land purchase price). Platinum Properties Group is proposing a business subsidy cash
<br /> incentive payment from the City of Ramsey in the amount of$410,000 to be included on this deal. Please see
<br /> 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. Council members should reference the "Closed Session MEMO" for
<br /> additional details/talking points.
<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. The attached PA is simply an edited version of the City's adopted"template
<br /> PA." Therefore,generally appears to be in compliance with City's Land Sale Policies.
<br /> (2) Offer Price
<br /> The offer price is market rate,at$2.00 psf($810,000).
<br /> PA includes a$310,000 incentive payment from the City to the Buyer(difference between $2.00 psf and
<br /> $1.23 psf).After the$310,000 incentive payment is considered, the buyer is making an offer of$1.23
<br />
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