Agenda - Economic Development Authority - 03/12/2020

Home

Economic Development Authority (EDA) Meeting Date: 03/12/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 1. Title: Consider First Amendment to Purchase Agreement for Part of Outlot A, COR Stone Brook Academy; Case of Cobblestone Hotel Development, LLC (Portions may be closed to the public) Purpose/Background: Purpose: The purpose of this case is to consider a proposed First Amendment to Purchase Agreement to incorporate changes to the lot size and business entity. The City of Ramsey and Cobblestone Hotel Development, LLC have negotiated the terms of a purchase agreement. Cobblestone and Gigi's Salon have been working to together with staff and have come to an agreement on the lot configuration and associated acreage for each project. Cobblestone will need 1.428 acres (62,204 SF) to construct its project and the area needs to be defined in the Purchase Agreement and TIF Agreement. The resultant square footage reduces the value of the property from $326,700 to $311,020. In addition, Cobblestone has created a Minnesota business entity called Ramsey Hotel Group, LLC, a Minnesota limited liability company which is filed with the MN Secretary of State. This entity will ultimately acquire the real estate and enter into the TIF Agreement with the City of Ramsey. The attached First Amendment to Purchase Agreement incorporates these changes into the terms of the Purchase Agreement. Notification: Notification is not required. Observations/Alternatives: Observations: Staff has been working with both Cobblestone and Gigi's Salon to find a lot size solution that will led to successful projects by both parties. Staff is comfortable that the proposed solution meets the needs of both parties and needs to incorporate the resultant acreage and updated business entity into the the Purchase Agreement for Cobblestone. Aside from the acreage, resultant property valuation, and business entity name, there are no other changes to the terms and conditions of the Purchase Agreement with Cobblestone. Funding Source: This case is being handled as part of normal Staff duties. If financial assistance is provided, TIF District 14 will also be a funding source. Recommendation: Staff recommends approval of the First Amendment to Purchase Agreement; subject to City Attorney approval as to legal form. Action: Motion to recommend approval of the First Amendment to Purchase Agreement for Part of Outlot A, COR Stone Brook Academy, subject to City Attorney approval as to legal form.