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Key Items from the Purchase Agreement include: Real Estate Tax ID Numbers: 28-32-25-23-0012, 28-32-25-23-0013 and a Portion of 28-32-25-23-0011. Lots 2, 3 and Part of Lot 1, COR TWO (Parcel 42a, 42b, 42c) Acreage Approximately 2.83 acres or 123,275 SF Asking Price $986,200 ($8.00 / SF) Offer Price $725,000 ($5.88 / SF) (SF Subject to change based on approved Plat) Earnest Money $10,000 Non-refundable upon Closing of the property unless RORE exercised. Continency Period 180 days from Effective Date (Date City Council approves) (city requires plat/ site plan approval before sale). Note: there is not a Notice to Proceed clause that renders the Earnest Money to be non-refundable. Closing Within 30 days of after Contingency Date. Commission Staff has worked with the Broker for ALDI (David Daly from CBRE) and Brian Pankratz from CBRE to put this project together. David Daly will receive 4% ($29,000) Commission and Brian Pankratz will receive 3% ($21,750) Commission Per the terms of the listing/broker agreements. Extensions Developer will deposit $10,000 in escrow for each 30 day extension (2 extensions allowed) of the Contingency Period. The $10,000 extensions are applied to the purchase price. City take care of Provide existing ALTA Survey and updated Title Work. The Developer will contract to plat the property as part of the site plan process and work with City to complete. Performance City to require construction of a minimum 20,664 SF commercial/retail building (Aldi Grocery Store) compliant with COR Zoning requirements and obtain a Certificate of Occupancy 24 months after Closing. If this is not done, the City may exercise the Right of Re -Entry. If the project does not move forward the Purchase price will be refunded to Aldi. Assignment Requires city approval if not same owners / company. Contingencies Section 3.02 of the Purchase Agreement defines the contingencies. Use Restrictions Exhibit C of PA lists the restricted uses on the lots Aldi is purchasing and the lot retained by the City of Ramsey. An ECR Agreement will be drafted as part of the platting process defining required easements, use restrictions. Property Tax and Job Creation The City is not providing a business subsidy, so there will not be a minimum assessment agreement or a requirement for job creation on the site. Staff does estimate that the project will be valued over 2 Million dollars which would generate over $60,000 on property taxes annually. Currently, due to the tax-exempt status, the property currently does not generate any property taxes. Staffing for Aldi stores has not been shared to City Staff, but new job opportunities will be created on site. Facilitating new tax base and job creation are key elements to the function of the EDA. Alternatives: 1. Recommendation to City Council to approve Purchase Agreement, Use Agreement and Right of Re -Entry Agreement as presented. (Staff recommendation)