Agenda - Economic Development Authority - 12/09/2021

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Economic Development Authority (EDA) Meeting Date: 12/09/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 2. Title: Consider Options Regarding Purchase Agreement for Lot 4, Block 1, Riverside West; Case of Windows and Doors USA LLC (Portions of meeting could 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 Council approved a Purchase Agreement for Windows and Doors USA to purchase Lot 4, Block 1, Riverside West, Anoka County and to commit to construct a 10,000 square foot building within one year of the closing date. Staff has been in sporadic contact with the Owner of Windows and Doors USA and has been unable to get the purchase agreement executed and has not received the $3,000 in Earnest Money. Mr. Frank Serna has asked to remove the Right of Re -Entry Agreement requirement but staff has communicated that this is the City process and it will not be removed. Staff continues to reach out to Mr. Frank Serna (via email and phone) but has been unable to connect. During the 2 months since approval of the Purchase Agreement from the City Council Staff has received interest from others having interest in the property. In addition, the City needs to complete the Plat for the vacation of Dolomite Street and the uncertainty of not having a purchase agreement with a site plan is delaying that process. Notification: Notification is not required. Observations/Alternatives: Observations: City Staff has worked hard to make contact with Mr. Frank Serna and to get the Purchase Agreement executed. Staff believes the proposed project would be a great fit on this lot but is concerned with the lack of communication from the Buyer and the unwillingness to execute the Purchase Agreement . Site options in Hwy 10 are limited in Ramsey and the city has effectively held this property off the market since the City Council approved the Purchase Agreement on September 28, 2021 via Resolution #21-274. Staff has presented some alternatives below and is looking for some direction: Alternatives: 1. Continue to work with Windows and Doors USA LLC to get the existing Purchase Agreement executed 2. Recommendation by EDA to City Council to provide written notice to Windows and Doors USA LLC that the Purchase Agreement approved on September 28, 2021 is no longer valid 3. Something else. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: