Agenda - Council - 11/26/2019 - Laserfiche WebLink

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lour 1111.1siion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. CC Regular Session 7. 2. Meeting Date: 11/26/2019 By: Sean Sullivan, Community Development Information Title: Adopt Resolution # 19-272 Approving New/Extended Purchase Agreement for Lot 1, Block 1, Anderson Dahlen South Addition; Case of Knoll Properties LLC Purpose/Background: PURPOSE The purpose of this case is to consider adoption of Resolution #19-272 approving a Purchase Agreement for Lot 1, Block 1, Anderson Dahlen South Addition. This new Purchase Agreement would replace the previously executed Purchase Agreement with an Effective Date of April23, 2019. While the technical application is a new Purchase Agreement, as a practical matter, the request is to extend the date to provide a Notice to Proceed to January 31, 2020. The City has not refunded any Earnest Money, and the Buyer has not proposed depositing additional Earnest Money. 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 and approved changes to the Right of Re -Entry Agreement extending the deadline to construct and occupy to project to December 31, 2020. The Purchase Agreement has now technically expired as the Inspection Period has ended and a Notice to Proceed has not been given. The Buyer has provided a letter outlining the difficulties to perform under the April 23, 2019 Purchase Agreement and has requested an extension to try to see if the project can still be completed. 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