Agenda - Council - 03/12/2019 - Laserfiche WebLink

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Notification is not required. Observations/Alternatives: City Staff presented the details of the proposed exchange at the February 14 EDA meeting. The City has been negotiating with PSD, LLC to find a solution that both parties can willingly accept. Staff received appraisals from Certified Appraisal Services (CAS) for the properties and the values assigned to each parcel are consistent with the appraisals and agreed to by both negotiating parties. The City is sellling Parcel 45 (west of Armstrong Boulevard) which is approximately 103,857 square feet. The Asking Price is $644,952 which is $6.21 per square foot, which is in the City's approved Deal Range. The City wil be acquiring approximately 124,725 square feet owned by PSD LLC. The price of acquisition is $636,698 which is at a blended rate of $5.10 per square foot. The proposed net proceeds to the City as a result of this land exchange is $8,254.00 (subject to verification of actual square footages). The complexity of this transaction allows for some flexibility in how the deal will ultimately be structured. The sale of Parcel 45 does not fit the generic Purchase Agreement template due to it being a land exchange. However, Staff has worked to find an agreement that will result in the City acquiring the necessary land for the proposed stormwater project referenced above. In addition, the proposed terms of the purchase agreement requires the developer to construct one building of a retail development on Parcel 45 (concept attached). Benefits of the transaction include, but are not limited to increasing retail options, increasing tax base, and the creation of jobs. The following items make this proposed purchase agreement unique: 1. The closing for both properties will occur simultaneously. The City would like to close on this transaction as as soon as possible to begin work on the Stormwater Infiltration Pond. 2. A site plan and plat will not be approved by Planning Commission or City Council prior to the sale of the Parcel 45 to PSD, LLC. The Developer understands the risk and must comply with the City Development Process and regulations. 3. The City will execute its typical Right of Re -Entry Agreement with an edit. The Developer will have 18 months to complete the building and to receive a Certificate of Occupancy. If this is not done Parcel 45 will be returned to the City. However, there will not be a financial penalty if a second building is not constructed. A complete summary of the land exchange and the terms sheets for each land transaction are attached to the case. It should be noted that actual square footages fo the parcels involved in the exchange will need to be verified by both parties through a licensed survey. The City of Ramsey has already passed a sales Ordinance authorizing the Sale of Parcel 45. Funding Source: This case is being handled as part of normal Staff duties. The Stormwater Utility Fee will need to reimburse the EDA for the acquisition of Parcel 45. CBRE does have Parcel 45 listed for sale, and is entitled to a Broker Fee. Recommendation: Staff recommends adoption of Resolution # 19-067 Approving Purchase Agreements for Land Exchange; Case of PSD LLC, subject to review by the City Attorney as to legal form. Action: Motion to adopt Resolution # 19-067 Approving Purchase Agreements for Land Exchange; Case of PSD LLC; subject to City Attorney approval. Attachments Site Location Maps and Summary Purchase Agreement 1 Summary Purchase Agreement 2 Summary and Concept