Agenda - Economic Development Authority - 07/14/2022

Home

Economic Development Authority (EDA) 4. 1. Meeting Date: 07/14/2022 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Title: Consider First Amendment to Purchase Agreement for Parcel 50; Case of Java Properties Purpose/Background: Purpose: The purpose of this case is to consider amending the Purchase Agreement with Java Properties LLC to extend the Inspection Period 180 days. Background: The City entered into a Purchase Agreement with Java Properties, LLC on December 15, 2021 to purchase and develop approximately 7 acres located South of Casey's General Store and O'Reilly Auto Parts. The Inspection Period Ended on June 15, 2022. The City received the request for the extension on June 14, 2022 prior to the Inspection Period ending. During the Inspection Period more information relating to the timing of the Hwy 10 project, specifically the Ramsey Blvd interchange,was shared with the developer. Coordination with the City and Anoka County for timing and cost of construction of the necessary turn lane from Ramsey Boulevard to Veteran's Drive and the closure of Ramsey Boulevard from Hwy 10 in 2025 are factors that need more time to be resolved. The Developer is asking the City for an extension of 6 months at the cost of$5,000 in Additional Earnest Money to re-evaluate the project and better define project costs. Staff is supportive of this request. Notification: N/A Observations/Alternatives: The proposed development concept from Java includes a car wash and coffee shop in the initial phase. Future phases, or additions to the first phase, include a restaurant, a general retailer or other user. These uses are subject to change but all buildings constructed in the COR will need to meet COR standards or be granted the approvals necessary to receive site plan approval. The City has expressed a willingness to consider cost sharing Peridot St and to help pay for the Extension of Veteran's Drive but these costs have not been defined. The impacts of the Highway 10 project and definition of project costs have been cited as a reason for the developer to take more time to evaluate the project before it is comfortable giving a Notice To Proceed. The construction of a right turn lane to Veteran's Drive and Ramsey Boulevard being closed for a period of time in 2025 specifically are impacting this potential project. The only changes being requested to the purchase agreement include the following: 1) 180 Extending the Extension Period from June 15, 2022 to December 15, 2022. 2)Provision of$5,000 in Additional Earnest Money. (total of$15,000) Alternatives include: 1) Recommendation to City Council to approve First Amendment to Purchase Agreement on Parcel 50 with Java Properties (as presented); subject to City Attorney Review 2) Recommendation to City Council to approve First Amendment to Purchase Agreement on Parcel 50 with Java Properties (with changes); subject to City Attorney Review 3) Something else.