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lour 1111.1siion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. Economic Development Authority (EDA) Meeting Date: 06/14/2018 Submitted For: Kurt Ulrich, Administrative Services By: Katie Schmidt, Administrative Services 4. 1. Title: Review Letter of Intent for Purchase of Property (PID# 34-32-25-13-0005) 6710 Highway 10 NW Ramsey, MN. Portions may be closed to the public) Purpose/Background: Review Letter of Intent for Purchase of Property (PID# 34-32-25-13-0005) 6710 Highway 10 NW Ramsey, MN. Sterling Trophy is a trophy business currently operating in Anoka. They have submitted the attached Letter of Intent to purchase the property for $125,000 (which is $2.30 per square foot). The property is currently listed by the County as having an estimated market value (EMV) (not an appraisal) of $240,300 ($4.48 per s.f.). The City purchased the property, with a businss and building, in 2013, and razed the building after purchase. A previous purchase agreement (for $170,000) for a garage door company fell -through in 2014, when the garage door company purchased an existing building in Ramsey. Notification: Notification is not required. Observations/Alternatives: The property is located midway between the proposed Ramsey interchange and the proposed Sunfish lake Boulevard interchange. Access to the site will be impacted when Highway 10 is constructed to freeway standards, but the timeframe for that work is not known. The site has city sewer and water available and a storm pond will need to be installed as part of the development. The applicant wishes to purchase the entire 1.23 acre (53,579 square foot) site for possible future expansion or subdivision. The trophy company proposes to construct a 4,000 square foot building that would have a small office and showroom area (1,200 s.f.) with the balance of the building being used for assembly and storage. The property was purchased by the City in 2013 using Anoka County HRA funds. Land proceeds from the sale can remain with the city and it is proposed that they be deposited in the City's Economic Development Fund for future projects. The applicant also has an interest in applying for a loan from the EDA revolving loan fund to fill any financing gaps not covered by the SBA loan and buyer's equity. Funding Source: No funding is required.