Agenda - Economic Development Authority - 01/13/2022

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Motion by Member Johnson, seconded by Member Olson, to recommend to City Council to approve Second Amendment to Purchase Agreement and Right of Re -Entry Agreement for Outlot B, COR Stone Brook Academy as presented; subject to City Attorney review. A roll call vote was performed: Member Howell aye Member Riley aye Chairperson Cords aye Member Steffen aye Member Johnson aye Member Olson aye Motion carried. 4.02: 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) Economic Development Manager Sullivan presented the staff report. Chairperson Cords asked if this would be reasonable time to expect response from the applicant. Economic Development Manager Sullivan commented that typically with purchase agreements, there would be earnest money provided to City after the purchase agreement is approved by City Council and work would begin on the site plan. He stated that the applicant did previously mention the uncertainty of the market. He noted that he has never had an applicant go this silent before and he did not see any recent progress or desire to make progress. He stated that the applicant has expressed concern with the right of re-entry agreement, but it was explained that the City uses that as common practice. He stated that it is a good project he would like to see happen but is not receiving indications that it will come to fruition. Member Olson asked if the right of re-entry agreement is common for cities to use. Economic Development Manager Sullivan commented that some cities use the clause while others do not. He stated that Ramsey is unique in the amount of land it owns, whereas some cities do not own much land for development. He stated that the clause is good to have because the desire is for the land to be developed rather than a situation where a person purchases the property to sit on it for a length of time. He stated that the right of re-entry agreement has been enacted and used in the past. He stated that under that clause the City has the right to take the property back but does not have to take the property back. He noted that a financial penalty could also be imposed if development does not happen by certain dates. Member Riley stated that it is important to have the right of re-entry as that protects the interest of the City and the residents, as the intent is to have the land developed rather than remain vacant for decades. He suggested that staff keep moving with the applicant but advise him that the land is Economic Development Authority/ December 9, 2021 Page 3 of 6