Agenda - Economic Development Authority - 09/09/2021

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Economic Development Authority (EDA) Meeting Date: 09/09/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 1. Title: Consider Purchase Agreement for Lot 4, Block 1, Riverside West; Case of Windows and Doors USA (Portions may be closed to the public) Purpose/Background: The EDA may choose to going into closed session pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the EDA chooses to enter into to closed session the statute and reason above needs to be referenced along with legal description (Lot, 4, Blockl, Riverside West) and the Anoka County Tax ID number 34-32-25-13-0005. The City of Ramsey and Windows and Doors USA have been working to find a site suitable for the business relocation and to negotiate a Purchase Agreement. This business is currently located in Ham Lake in a Multi -tenant building. Windows and Doors USA is window and door distributor that sells and services specialty products to the general public. Windows and Doors USA has agreed to the attached purchase agreement and the general terms and conditions outlined on the attached Term Sheet. The proposed purchase price is within the City's approved deal range for this parcel; however, it still will require site plan and plat approval through the normal planning and zoning process. The proposed purchase agreement includes a simple development concept and likely will need some revisions. The proposed use of retail/showroom/warehouse has been reviewed by Planning. The Planning Commission will still need to review the site plan to ensure the layout is consistent with city zoning and code. The time periods, and extensions outlined in the term sheet and PA are consistent with recent PA templates aside from the Due Diligence period being 2 months shorter. Notification: Notification is not required. Observations/Alternatives: Observations: The proposed site will be 1.46 acres upon completion of the Final Plat and Vacation of Dolomite St NW. The purchase price is $178,479 ($2.79 / SF). This price is within the approved "deal range". Windows and Doors USA plans to be the general contractor for this project as they have experience in this area. A copy of the preliminary site plan is attached. This was a city generated lead for a city listed city parcel. The proposed Purchase Agreement includes a 2.5% commission for the buyers agent. The following items are worth highlighting: Moneyt I $3,000, Nonrefundable after a Notice to Proceed has been given by the Buyer. Inspection 120 days from Effective Date (Date City Council Approves) (city requires plat/ site plan Period approval before sale). Closing Within 30 days of Notice to Proceed. Extensions Developer will deposit $3,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.