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

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over 300 full time employees and plans to add 60 over the next 3 years as a result of this proposed business expansion. BACKGROUND Purchase Agreement) Attached to this case is the proposed Purchase Agreement (PA). Notification: Notification is not required. Observations/Alternatives: OBSERVATIONS • Zoning/Use: Generally, the proposed development concept fits within the City's existing zoning regulations (will require official site plan review and approval). The Planning Commission reviewed the concept plan from this perspective and consensus was to move forward. • Sale Price: The asking price for the subject property is $2.47 per square foot ($1,000,000). The offer price is $1.66 per square foot ($675,000). The offer price is "below the mid -range" (but within the total deal range) of the City's adopted "deal -range" for the subject property. Staff will recommend this offer price be accepted based on the project merits. • Property Taxes: The proposed development is based on a 75,000 square foot building with the possibility for an additional 40,000 square foot expansion. Based on an estimated taxable market value of $4,000,000 for Phase 1, this project will generate about $133,000 in total annual property taxes, with the City receiving approximately 25% ($33,250) annually when it hits the tax rolls. • Earnest Money: This PA does include earnest money ($67,500.00, 10%). Earnest money will become hard if the initial closing date is extended by the buyer. • Broker Commission: There is no broker commission for this transaction • Net Proceeds: $675,000. • Closing Date: To be determined. Attached to this case is draft project timeline. • Land Sale Policy: The attached PA generally meets the intent of the City's draft "Land Sale Policy" and has been reviewed by the City Attorney, and staff. Several changes (and negotiations) have taken place between staff and the buyer. • Buyer: The buyer (Knoll Properties / Anderson Dahlen) has a history of success and delivering on projects in Ramsey as shown by its expansion to its original building onsite and its commitment to creating "living wage" jobs in the community. ALTERNATIVES 1. Approve (EDA recommendation) The proposed deal provides several benefits to the City: (1) tax base (2) land -sale proceeds (3) retain and create jobs (4) quality project (5) positive momentum for development in Ramsey (6) the Council's general goal of selling tax-exempt surplus City owned land will be realized. 2. Deny The City Council could recommend denial of the offer/project or direct Staff to counter-offer If the proposed agreement is terminated, the Staff would restart marketing the subject property with Anoka County on MNCAR. 3. Amend The City Council may choose to recommend to adjust provisions included in the proposed PA. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: