Agenda - Economic Development Authority - 08/08/2019

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lour 1111.1siion: To work together to reiposihty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. Economic Development Authority (EDA) 4. 2. Meeting Date: 08/08/2019 By: Sean Sullivan, Community Development Title: REVISED: Consider Resolution #19-188 Approving Right of Re -Entry Agreement for Lot 1, Block 1, Anderson Dahlen South Addition; Case of Knoll Properties LLC. Purpose/Background: PURPOSE Consider Recommendation of Approval of Right of Re -Entry Agreement between the City of Ramsey and Knoll Properties, LLC. 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 had 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. The City entered into a Purchase Agreement with Knoll Properties dated April23, 2019. The PA references the execution of a Right of Re -Entry Agreement with a Certificate of Occupancy date of July 31, 2020. Knoll Properties, LLC has requested that the Certificate of Occupancy date be moved to December 31, 2020. 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). 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 over 300 full time employees and plans to add 60 over the next 3 years as a result of this proposed business expansion. BACKGROUND (Right of Re -Entry Agreement)