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Economic Development Authority (EDA) 4. 1. Meeting Date: 02/09/2023 By: Sean Sullivan, Community Development Title: Consider Purchase Agreement for a Portion of Lot 1, Lot 2 and Lot 3, Block 1, COR TWO; Case of ALDI (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 of Lots 1, 2 and 3, Block 1, COR TWO, Anoka County Minnesota Property Tax ID Numbers 28-32-25-23-0011, 28-32-25-23-0012 and 28-32-25-23-0013 The City of Ramsey and ALDI have been in negotiations for over a year to bring a 20,664 square foot grocery store to the COR. The City executed a LOI outlining general terms to begin negotiations for a formal Purchase Agreement n September 9, 2022. The LOI included provision that required the use of an Aldi corporate purchase agreement rather than the typical purchase agreement the city uses. City Staff, the City Attorney and representatives form Aldi have negotiated to modify the purchase agreement to include concessions from typical deals from both Aldi and the City. The asking price for the land is $8.00 / SF ($986,200) and a purchase price has been negotiated for $5.88 / SF ($725,000). Staff believes that the addition of Aldi to the COR will bring another option for Ramsey residents that will compliment the existing Coborn's in North Star Marketplace. In addition, it will bring a tax-exempt parcel onto the tax rolls and allow the city to continue to recoup costs associated with land acquired in the COR in 2009.The time periods, and extensions outlined in the term sheet and PA are generally consistent with recent PA templates aside from the requirement for a Certificate of Occupancy being 24 months rather than the usual 12. The Right of Re -Entry Agreement has significant deviation from the typical agreement which calls for the purchase price to be refunded to the developer if the City chooses to exercise the right of re-entry. The change of the C/O date is due to the longer timeframes the construction industry is seeing for obtaining building materials. Staff is asking the EDA to consider the Purchase Agreement, Use Restriction and form of Right of Re -Entry Agreement and to make a recommendation to the City Council. The Planning Commission and City Council will still need to review the formal site plan and plat submittal to ensure the layout, building facade and building materials are consistent with COR zoning and city code. Aldi has provided some preliminary Building elevations.(Attached) Staff has communicated that the back of the building facing Sunwood Drive will need to have some additional articulation and potentially some windows added or enlarged to enhance street presence based on the COR framework. Notification: Notification is not required. Observations/Alternatives: Observations: The proposed site will be +/- 2.83 acres upon completion of the Final Plat. The proposed $20,664 SF building is depicted on the attached concept plan and in the Purchase Agreement. The purchase price of $725,000 ($5.88 / SF). This price per/SF is within the approved "deal range". The City has worked with brokers to help bring this deal forward and broker commission compensation is highlighted below. The developer has communicated a desire to obtain site plan approval in April / May 2023 and to construct the project in 2023. As previously mentioned in this case above, there are a number of new items, that are different to our standard purchase agreement which are underlined below.