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

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drafted reflecting the new square footage. 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 commercial / 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 and the Developer would like to construct the project in 2019. 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. 4. $1.00 earnest money will be required by the Buyer for each purchase agreement due to this being a land exchange. A complete summary of the revised land exchange and the terms sheets for each land transaction are attached to the case. The effective dates are changed to reflect the proposed City Council approval date. The City of Ramsey has already passed a sales ordinance authorizing the Sale of Parcel 45. Funding Source: 50% Storm Water Utility Fund / 50% Storm Water Management Fund - Purchase of the land needed for the storm water infiltration basin, right of way and to reimburse the EDA for the sale of Parcel 45 This case is being handled as part of normal Staff duties. CBRE does have Parcel 45 listed for sale, and is entitled to a Broker Fee. However, due to the fact this this is a land exchange and the City will not be realizing revenue for the Sale of Parcel 45 there will be no broker fee paid. Recommendation: Staff recommends adoption of Resolution # 19-093 Approving Revised Purchase Agreements for Land Exchange; Case of PSD LLC, subject to review by the City Attorney as to legal form. The Planning Commission has reviewed a concept site layout, and is generally comfortable moving forward with official site plan review. Action: Motion to adopt Resolution # 19-093 Approving Amendment to Purchase Agreements for Land Exchange; Case of PSD LLC; subject to City Attorney approval. Attachments Site Location Maps and Summary Purchase Agreement 1