Agenda - Council - 08/08/2017 - Laserfiche WebLink

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CC Regular Session Meeting Date: 08/08/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 7. 3. Information Title Stone Brook Children's Academy: Multiple Actions Purpose/Background: PURPOSE Consider approving the attached resolution which outlines multiple actions related to the proposed Stone Brook Academy and Childcare Center (MK Johnson Properties LLC). For the sake of simplicity, staff is wrapping all six actions into one resolution, and one case (rather than six separate cases). (1) Approve the attached right -of -entry agreement. During construction of the proposed childcare facility, Stone Brook's general contractor will need access to the adjoining city -owned properties for temporary staging and access. This temporary agreement will allow for orderly and efficient construction of the proposed project. This is a common request for construction projects. (2) Approve the attached right -of -re-entry agreement. Per the attached purchase agreement for city -owned land, the buyer must enter into a right -of -re-entry agreement. This is a "performance" agreement that will be recorded against the new Stone Brook Academy Inc.(MK Johnson Properties, LLC) property. It will require the construction of the proposed 9,100 square foot facility by September 1, 2018. This agreement also outlines default provisions. (3) Pass a resolution formally authorizing the sale of city -owned land. As required by the Anoka County Recorder's Office, the city must pass resolution authorizing the sale of city -owned land. This is purely administrative. The city has already approved a purchase agreement outlining this action, and previously an ordinance (4) Pass a resolution formally authorizing the cost -share for Yolite Street. As outlined in the attached purchase agreement, the developer will be constructing the proposed public roadway as part of their project (known as Yolite Street today). The City of Ramsey has agreed to reimburse the developer for 80% of costs associated with said construction project. As part of the financial underwriting for the overall project, the SBA is asking for a resolution from the City of Ramsey outlining this item specifically. (5) Approve the attached purchase agreement amendment. As anticipated in the original purchase agreement, the buyer will/is reassigning this project to a new entity (MK Johnson Holdings LLC). This is a simple reassignment amendment. No other changes made. (6) Authorize EDA Loan and approve the attached loan documents. Consider Request for use of EDA Revolving Loan Fund (RLF). $100,000 EDA loan amount, 4.24% of total project costs ($2.36M total costs), 15-year term, 3% interest, with land/building as collateral, and a personal guarantee. This loan request generally meets the city's policy requirements, has been underwritten by the City's loan consultant (cmdcbusinessloans.coml, and has been reviewed by the Ramsey EDA. Both CMDC and the Ramsey EDA recommend approval. Please see observations section for details on the EDA Loan. BACKGROUND The business is Stone Brook Children's Academy Inc. (MK Johnson Properties LLC). The City approved a purchase agreement with Stone Brook Children's Academy on March 15, 2017. Said agreement is set to close by