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Agenda - Economic Development Authority - 01/11/2024
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Agenda - Economic Development Authority - 01/11/2024
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Meetings
Meeting Document Type
Agenda
Meeting Type
Economic Development Authority
Document Date
01/11/2024
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that results in the creation of tax base and jobs which is the mission of the EDA. <br />Mitchell Webb, from MW Properties LLC will be in attendance to provide more detail relating to the <br />proposed project and to answer questions the EDA may have. <br />Project Highlights <br />Project Description - 9,759 SF Auto Repair Shop (oil change, auto repair) There will be no auto body work or <br />automobile restoration work (these uses tend to be a bit messy and wouldn't be a good fit in the neighborhood) <br />Project Costs - 1.7-2M <br />Job Creation - 7-8 employees with wages from $50,000 - $125,000 <br />Tax Assessed Valuation (Estimate) - 1.6M <br />Annual Property Tax (Estimate) - $42,000 <br />Annual Local (City,School, County Estimate) - $29,000 <br />Annual Property Tax - City Portion (Estimate) - $11,000 <br />Zoning - B-2. Conditional Use Permit required. <br />Key Purchase Agreement Terms <br />Buyer - MW Properties LLC <br />Seller - City of Ramsey <br />Property Address - 5195 142nd Avenue NW <br />Legal Description - Lot 1, Block 1, Rivers Bend Plaza 2nd Addition <br />PID# - 25-32-25-43-0043 <br />Acres - Approximately 1.01 acres <br />Purchase Price - $2.27/SF <br />Earnest Money - Earnest Money of $10,000.00 will be held by mutually agreed upon title company upon full <br />execution of Purchase Agreement. Said deposit would be refundable to Buyer in the event that a Notice to <br />Proceed is not given by the Buyer at the end of the Inspection Period. Additional $10,000 Earnest Money events <br />may occur upon discussion and agreement in Purchase Agreement. <br />Inspection Period - Buyer shall have one hundred eighty(180) days following Effective Date to investigate <br />property. <br />Right of Re-entry - Within 16 months from the Closing Date, the Buyer shall have achieved completion of a <br />minimum 9,500 SF Automobile Repair Business and have obtained a Certificate of Occupancy. Zoning <br />requirements to be further defined by an approved Site Plan. At Closing, a "Right of Re -Entry Agreement" shall <br />be executed and recorded against the Property. <br />Closing - Closing shall take place 30 days after Buyer delivers Notice to Proceed to Seller. Two (2) additional <br />Sixty (60) day extensions will be granted with each extension requiring a $10,000 earnest money deposit that is <br />nonrefundable but applicable to the purchase price. <br />Alternatives include: <br />1) Recommendation to the City Council Approval of Purchase Agreement and Right of Re -Entry Agreement (as <br />presented); subject to City Attorney review. <br />2) Recommendation to the City Council Approval of Purchase Agreement and Right of Re -Entry <br />Agreement (with changes); subject to City Attorney review. <br />3) Something else. <br />Funding Source: <br />N/A. There is no assistance being provided. <br />Recommendation: <br />Staff recommends and EDA recommendation to the City Council for approval of the Purchase <br />Agreement and Right of Re -Entry Agreement (as presented); subject to City Attorney review. <br />Outcome/Action: <br />
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