Agenda - Economic Development Authority - 05/11/2023

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Observations: The proposed site (27-32-25-33-0006) will be +/- 4.14 acres upon completion of the Final Plat. The purchase price is $600,000 ($3.32 / SF). This price per/SF is within the approved "deal range". Staff understands that the square footage of building does not maximize the site potential. However, the developer is asking to be able to put in excess parking so that it can accommodate multiple events and keep all its customers onsite. A copy of the preliminary site concept plan is attached but will likely be modified. This was a city generated lead for a city un-listed parcel, so only Premier Commercial Properties (Buyer Broker) will receive 3% commission. The following Purchase Agreement items are worth highlighting: Earnest Money Inspection Period Closing Extensions $10,000, Nonrefundable after a Notice to Proceed has been given by the Buyer. I 1180 days from Effective Date (Date City Council Approves) (city requires plat/ site plan approval before sale). I Within 30 days of Notice to Proceed. Developer will deposit $10,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable. Performance City to require construction of a minimum 22,000 SF building and obtain a Certificate of Occupancy 16 months after Closing. If this is not done, the City may exercise the Right of Re -Entry Agreement. Project Profile: Acreage: 4.14 Acres Use: Indoor Recreation Customer Count: 400-500 per week Building Size: 22,000 SF with 8,000 or more SF expansion Project Budget : 5M Estimated Tax Assessed Project Valuation: 3.5M-4.5M Tax Estimate: $98,000 - $127,000 City Portion: 15K - 19K (not including fiscal disparities) Jobs On Site: 3-4 FT and 15-20 PT Alternatives: 1. Recommendation to City Council to approve Purchase Agreement and Right of Re -Entry Agreement as presented. (Staff recommendation) 2. Recommendation to City Council to approve Purchase Agreement and Right of Re -Entry Agreement with changes. 3. Something else. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: Staff recommends a recommendation to the City Council of the attached Purchase Agreement and Right of Re -Entry Agreement as presented, subject to City Attorney review. As noted above. Planning Commission has yet to review this site concept so this will be handled during the site plan application process and is likely to change. Action: