Agenda - Council - 02/14/2023 - Laserfiche WebLink

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Observations: The Ramsey EDA met on February 9, 2023 to review the Purchase Agreement, Use Agreement and Right of Re-entry Agreement. 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. Key Items from the Purchase Agreement include: Real Estate Tax ID Numbers: 28-32-25-23-00121 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 $72500 ($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