Agenda - Economic Development Authority - 06/08/2023

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Economic Development Authority (EDA) 4.2. Meeting Date: 06/08/2023 By: Sean Sullivan, Community Development Title: Consider Approval of Second Amendment to Purchase Agreement for Ramsey Properties, LLC (A portion of this meeting may be closed to public) Purpose/Background: The City Council 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 City Council chooses to enter into to closed session the statute and reason above needs to be referenced along with legal description (Part of Outlot A, COR TWO) and the Anoka County Tax ID number 28-32-25-22-0058. The purpose of this case is to consider approval of the Second Amendment to Purchase Agreement that involves the sale of Outlot A, COR TWO to Ramsey Properties, LLC (the "Developer"). The Developer has requested that the Inspection Period be extended from May 26, 2023 to June 26, 2023 to allow for the June 13, 2023 public hearing for the business assistance process to be completed and to ensure that the proposed assistance is granted. The EDA and City Council have previously approved a Purchase Agreement and a First Amendment to Purchase Agreement to build a 98 unit Hilton Home 2 hotel and a proposed non -binding deal structure involving$434,511 in TIF Land Cost Write down and $550,000 in TIF Pay -Go Site Development and improvements. The terms of the proposed TIF assistance being requested and project definiation remain unchanged. Notification: Notification is not required. Observations/Alternatives: Staff is asking the EDA to consider a recommendation of approval of the Second Amendment to Purchase Agreement to extend the Inspection Period from May 26, 2023 to June 26, 2023. General Project Description • 98 unit, Four Story Hilton Home 2 Hotel with hot breakfast and indoor pool; a Certificate of Occupancy 16 months after Closing. If this is not done, the City may exercise the Right of Re -Entry. • Estimated Tax Assessed Value 7.14M • Estimated Taxes - $218,000 annually • 11 new jobs to be created paying at least $14.75 / hr. • Must operate at location for 5 years • Catalyst project (provides more trips to COR and encourages investment in restaurants/retail) Site Plan and Plat Approval Site Plan and Preliminary Plat approval was aranted by the City Council on May 9. 2023. Final Plat and Development Aareement approval is to be considered by the City Council on June 13. 2023 or a later date. Alternatives: 1) EDA recommendation to City Council for Approval of Second Amendment to Purchase Aareement for Ramsey Properties. LLC (as presented): subiect to City Attorney Review (Staff recommendation). 2) EDA recommendation to City Council for Approval of Second Amendment to Purchase Aareement