Agenda - Council - 08/23/2022 - Laserfiche WebLink

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Observations: Purchase Agreement Considering that the Developer has shown the ability and financial capacity to build a project from the ground up (Delta ModTech) and the continued interest in further investment in Ramsey, Staff is asking the City Council to consider entering into the attached Purchase Agreement. The City has received $5000 for the LOI which will be re -allocated to an escrow account to pay for the TIF Agreement, TIF Application and related analysis. If additional funds are needed to complete the analysis and agreements the Developer will need to replenish this escrow to cover City costs. Staff is asking the City Council to consider taking action to approve the attached Purchase Agreement. The Purchase Agreement is generally same structure and form of the one previously used for the approved Cobblestone project which contemplates a 100% land cost write -down through Tax Increment Financing. General Project Description (to be further refined) • 60-80 unit, Four Story Hotel with hot breakfast and indoor pool; a Certificate of Occupancy 16 months after Closing (could be extended to 16 months based on supply chain issues or force majeure). If this is not done, the City may exercise remedies in the standard Right of Re -Entry Agreement that would be filed at the closing of the land transaction. • Assessed Value 5-6M • Estimated Taxes - $155,000 annually General Terms of Purchase Agreement • Parcel: Outlot A, Gigi Addition - +/- 1.43 acres • Purchase Price and Valuation: The purchase price for the Property is $1.00 on +/- 1.43 acres (62,290 square feet) as outlined in Exhibit A (the "Purchase Price"). The property valuation is $311,454. ($5.00/SF) • Inspection Period: 180 days • Right of Re -Entry Agreement Required • Reimbursement of Platting costs up to $3,500 if project proceeds. Business Assistance Application Staff anticipates submittal and review of a TIF Business Assistance Application no later than the October EDA meeting. Alternatives: 1) Adopt Resolution #22-185 Approving Purchase Agreement and Sale of Outlot A, Gigi Addition; (as presented) subject to City Attorney review. 2) Adopt Resolution #22-185 Approving Purchase Agreement and Sale of Outlot A, Gigi Addition (with changes); subject to City Attorney review. 3) Something else. Funding Source: This case is being handled as part of normal Staff duties. If financial assistance is provided, TIF District 14 will be a funding source. Recommendation: The EDA met on August 11, 2022 and unanimously recommended that the City Council Staff enter into the attached Purchase Agreement with The Schiebout Family Limited Partnership, LLLP (as presented), subject to City Attorney review. Action: Motion to Adopt Resolution #22-185 Approving Purchase Agreement and Sale of Outlot A, Gigi Addition; subject to City Attorney review.