Agenda - Economic Development Authority - 08/11/2022

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Economic Development Authority (EDA) 4. 3. Meeting Date: 08/11/2022 By: Sean Sullivan, Community Development Title: Consider Amendment to Form of Right of Re-Entry Agreement for Lots 1 and 3, Block 1, Riverside West Rearrangement; Case of Reliable Holdings LLC(Portions may be closed to the public) Purpose/Background: The EDA may choose to go 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 (Lots 1 and 3, Block 1, Riverside West Rearrangement) and the Anoka County Tax ID number is 34-32-25-13-0005 (prior to the new plat). The City of Ramsey and Blue Line Collision (Reliable Holdings, LLC)have been in discussions over the past 3 years regarding the future of their company in Ramsey.We have reviewed renovation and redevelopment options on his site and other future locations. Staff is excited at the possibilities of helping an existing Ramsey business to grow in our community. Blue Line Collision proposes to purchase 6710 Hwy 10 NW(former Bookstore site) and to construct a new 12,320 square foot autobody repair center. The offer for the platted 1.46 acre site is $200,000 ($3.12/SF) and the City has accepted the offer. The City and Blue Line Collision have entered into a Purchase Agreement and a"Notice to Proceed" has been provided by the Buyer to expedite the closing on the land. Blue Line has submitted a formal site plan Application to be acted upon by the Planning Commission and City Council in August. The Buyer is asking the City to close on the land prior to Site Plan approval so he can lock in construction financing during this volatile rate environment. Notification: Notification is not required. Observations/Alternatives: Observations: The proposed site is 1.46 acres, as confirmed by the newly filed West Riverside Rearrangement plat of record. The purchase price is $200,000 ($3.12 /SF). This price is within the approved "deal range". A copy of the submitted site plan is attached. This was a city generated lead for a city listed city parcel. There is no commission for this transaction. The following items are worth highlighting: (Earnest $20,000, Nonrefundable after a Notice to Proceed has been given by the Buyer. Money Inspection 180 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. Developer will deposit$10,000 in escrow for each 60 day extension (2 extensions Extensions allowed) Once extensions are made the money becomes non-refundable. F City to require construction of a minimum 10,000 SF building and obtain a Certificate of Performance Occupancy 16 months after Closing. If this is not done, the City may exercise the Right of Re-Entry.