Agenda - Council - 06/13/2017 - Laserfiche WebLink

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(3) Earnest Money $10,000, to become hard after inspection period. (4) Inspection Period September 29, 2017 (close 30 days after). (5) Extension Option If the buyer decides to extend the PA, they will be required to place $5,000 of additional non-refundable dollars in earnest for each 60 day extension. (6) Construction Deadline 07/01/2019, 50,000 square foot certificate of occupancy issued. (7) Removal of Materials The subject property includes stockpiles of con -bit and a large quantity of retaining wall blocks (concrete blocks). The City shall retain ownership of said items, and will remove from the subject property by September 15, 2017 Funding Source: NA Recommendation: STAFF REVIEW If there are questions, concerns, or desire to make a counter offer on price, staff will suggest the attached purchase agreement be discussed in closed session. At this point, staff is not making that request. RE price, staff would note, a negotiation on price has gone back -and -forth between staff and Sharp over the past few weeks. $1.50 was not Sharp's first offer. Below are some project benefits worth noting: • This project does not include any incentives, such as TIF. As a result, it will have an immediate positive impact to the general tax levy. This project is estimated to generate about $90,000 in total annual property taxes. • This project is speculative --meaning, tenants are unknown at this point. Therefore, job count predictions are challenging to make. However, at full occupancy, staff would predict the creation of 30-200 jobs, depending on the tenants. • This project will collect development fees, estimated at about: Park $20K, Trail 5K, Water 30K, Sewer $17K, Storm 22K. • This project does help Ramsey accomplish goals outlined in the Council Strategic Action Plan and EDA Workplan. • The above benefits do NOT account for the roughly 4.5 acres of extra land Sharp will utilize for owner occupied buildings. In other words, the long-term benefit to the City for this transaction will be greater. • Staff believes Sharp is a quality developer with a good track record in Ramsey; especially with Ramsey's business community. • Staff believes this project compliments the new business park (PSD's projects) well. Sharp is looking at a 18' clear building, with small bays, for small tenants. He will have land available for small, 15,000-30,000 sf owner occupied buildings. PSD is constructing 24' clear buildings, with large bays, for medium to large size tenants. PSD would only consider selling land, or constructing owner occupied buildings, for medium to large size tenants (40,000+ sf). EDA REVIEW • EDA reviewed this case on 06/08/2017. The EDA is generally supportive of, and excited for, this proposed proj ect. • The EDA voted 5-1 to recommend the City Council approve the attached purchase agreement. • The EDA unanimously suggested the CBRE 5% commission payment be pulled from this agreement. That update has been made by staff.