Agenda - Council - 01/23/2024 - Laserfiche WebLink

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tax-assessed value to be approximately 1.6M when completed, which results in approximately $42,000 in annual total property taxes, $11,000 being collected by the City. Expected job creation on the site is estimated to be 7-8 employees with wages ranging from $50,000 - $125,000. This is a solid project that results in the creation of tax base and jobs which is the mission of the EDA. Project Highlights Project Description- 9,759 SF Auto Repair Shop (oil change, auto repair) There will be no auto body work or automobile restoration work(these uses tend to be a bit messy and wouldn't be a good fit in the neighborhood) Project Costs - 1.7-2M Job Creation- 7-8 employees with wages from$50,000- $125,000 Tax Assessed Valuation(Estimate) - 1.6M Annual Property Tax(Estimate)- $42,000 Annual Local(City, School,County Estimate)- $29,000 Annual Property Tax-City Portion(Estimate)- $11,000 Zoning -B-2. Conditional Use Permit required. Key Purchase Agreement Terms Buyer-MW Properties LLC Seller-City of Ramsey Property Address- 5195 142nd Avenue NW Legal Description-Lot 1, Block 1, Rivers Bend Plaza 2nd Addition PID#-25-32-25-43-0043 Acres-Approximately 1.01 acres Purchase Price- $100,000($2.27/SF) Earnest Money -Earnest Money of$10,000.00 will be held by mutually agreed upon title company upon full execution of Purchase Agreement. Said deposit would be refundable to Buyer in the event that a Notice to Proceed is not given by the Buyer at the end of the Inspection Period. Additional $10,000 Earnest Money events may occur upon discussion and agreement in Purchase Agreement. Inspection Period-Buyer shall have one hundred eighty(180) days following Effective Date to investigate property. Right of Re-entry- Within 16 months from the Closing Date,the Buyer shall have achieved completion of a minimum 9,500 SF Automobile Repair Business and have obtained a Certificate of Occupancy. Zoning requirements to be further defined by an approved Site Plan. At Closing, a"Right of Re-Entry Agreement"shall be executed and recorded against the Property. Closing-Closing shall take place 30 days after Buyer delivers Notice to Proceed to Seller. Two(2)additional Sixty(60) day extensions will be granted with each extension requiring a$10,000 earnest money deposit that is nonrefundable but applicable to the purchase price. Alternatives include: 1)City Council Approval of Purchase Agreement and Right of Re-Entry Agreement(as presented); subject to City Attorney review. 2) City Council Approval of Purchase Agreement and Right of Re-Entry Agreement (with changes); subject to City Attorney review. 3) Something else. Funding Source: N/A. There is no assistance being provided. Recommendation: The EDA passed a unanimous motion to recommend to City Council to approve the Purchase Agreement and Right of Re-Entry Agreement(as presented), subject to City Attorney review.