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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-right-of refusal agreement 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 10, 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, Ryon, 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 know if the City was willing to provide incentives to end- <br /> users. <br /> Page 3 of 6 <br />