Agenda - Council - 04/23/2019 - Laserfiche WebLink

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Our Mistioi}: To work together to reipoiibly grew our comma nityr, and to provide quality, cent-oliBcdwe, and efficient government services. CC Regular Session 7. 3. Meeting Date: 04/23/2019 By: Sean Sullivan, Community Development Information Title: Adopt Resolution #19-094 Approving Purchase Agreement for North 9.3 Acres of Lot 1, Block 1, Bury and Carlson Addition; Case of Knoll Properties LLC (portions may be closed to the public) Purpose/Background: PURPOSE Consider purchase agreement (PA) from Knoll Properties LLC. for approximately 9.3 acres of City owned land located in Lot 1, Block 1, Bury and Carlson Addition, west of Molin Concrete. NOTE: if the City Council wishes, this case may be discussed in closed session. Closed session discussion shall be limited to reviewing the City's pricing strategy and developing a counter-offer (including all pricing and relevant terms). BACKGROUND (Subject Property) This 9.3 acre site is located at the SE corner of 143rd Avenue NW and Jaspar St NW, just west of Molin Concrete and is currently zoned E-2 Employment District. The entire 19.88 acre property was purchased by the City in 2008 for redevelopment / Public Works purposes for a price of $1,593,500. The site is vacant, tax exempt, and is available. The City has the north 9.3 acres property listed on MNCAR through Anoka County for $1,000,000. This is not a CBRE listing. Proceeds from the sale of this property would go to Public Works. A Sales Ordinance will need to be adopted prior to the sale of this property. The draft Ordinance #19-07 is attached to this case. BACKGROUND (Andersen Dahlen & Knoll Properties, LLC) Knoll Properties LLC is a holding company based out of Ramsey and managed by Tom and Dave Knoll. Both entities are in good standing with State of Minnesota (business and lien system). There is a chance that another holding company could be created for this project but as of now, Knoll Properties, LLC is anticipated to be the buyer/owner. Anderson Dahlen was founded in the 1940s and was purchased by Richard Knoll in 1978. In 1984, Tom and Dave Knoll purchased 20% of the company. Tom and Dave Knoll purchased the remaining 80% of the company and consolidated into a 48,000 facility in Coon Rapids. In 2000, Anderson Dahlen built a 84,000 SF facility and moved its operations to Ramsey. In 2018, a 101,000 expansion opened at their Ramsey location. Currently, Anderson Dahlen employs over 300 employees. Anderson Dahlen is now out of space at their current location and needs to secure additional space for the growth of its business. The development proposal includes commencing construction of 60,000-75,000 square feet of manufacturing space (with the ability to add 40-60,000 square feet at a later date) on the Subject Property (City owned property). The project would be completed no later than July 31, 2020. The total investment in Phase one of this project is anticipated to be near $6 Million Dollars. Anderson Dahlen plans to (a) keep their existing facility and (b) construct/operate from the new facility in Ramsey on the Subject Property. Anderson-Dahlen currently has