Agenda - Economic Development Authority - 02/08/2024

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Observations: Key terms for the Purchase Agreement(s) are below with Take 5 being baseline and Valvoline in(Parenthesis). The offers are similar but not identical with significant changes to Right of Re-Entry,Parcel buy back,timing and site concepts: Real Estate Tax ID Number: 28-32-25-23-0023. Lot 2,Block 1, COR FOUR, (Parcel 42a) (SAME) Acreage Approximately 1.16 acres or 50,529 SF (SAME) Asking Price $4041236($8.00/SF) (SAME) Offer Price $404,236 ($8.00/SF)—Net$279,236 ($5.52/SF) (Subject to change based on actual cost of construction of 20 space parking lot on Northstar Marketplace site and connection to Take 5 development (Same,Net increase$294,236.80) Earnest Money $15,000 Non-refundable upon Notice to Proceed being executed. (SAME) Inspection Period 180 days from Effective Date(Date City Council approves) (city requires plat(If needed)/site plan approval before sale)(SAME) Closing Within 30 days of Notice to Proceed. Commission 3.5%commission for Jones Lang LaSalle Brokerage and 3.5%to CBRE. (Same percentages but with Midland Atlantic) Extensions to Close Developer will deposit$5,000 in escrow for each 30-day extension(2 extensions allowed)Once extensions are made the money becomes non-refundable. (SAME) City take care of Provide existing plat information and updated Title Commitment.(SAME) Performance City to require construction of a minimum 1,800 SF commercial/retail building(Take 5 Oil Change) compliant with COR Zoning requirements and obtain a Certificate of Occupancy 12 months after Closing. If this is not done,the City may exercise the Right of Re-Entry. In addition, the Developer will be responsible for construction of 20 space parking lot on Northstar Marketplace site and connection to Take 5 development and future plat(if needed)for Remnant building site. (Very Different-Within twenty-four months from the Closing Date, Buyer shall obtain all permits and approvals for a minimum 1,674 SF oil change building and to construction of 20 space parking lot on Northstar Marketplace site and connection to oil change development) Right of Re-Entry A Right of Re-entry Agreement requiring a GO within 12 months of closing will be required for the Take 5 Oil Change Development. The Right of Re-Entry will not require the developer to develop the remnant parcel. (Very Different -24 months instead of 12 months,No C/O required only permits and approvals,City parcel buyback at purchase price less commission) Additional Items To Consider: .Is this a use on this site that the EDA supports? .Does the City want to wait and see if it can get alarger/different user that maximizes the site initially? .Is the City OK with the Developer retaining the remnant land to the west to develop at a future date ? (we do have protections for good users due to Aldi Restrictions) .Does the EDA like the layout Site Plan: - This site plan has not yet gone through formal site plan review and shall not be considered as any indication of compliance with Zoning Code. Planning Staff however,has reviewed the plan,provided input on the plan and is generally happy with it with some minor modifications. Official site plan review might result in required changes to the attached site plan. Based on the the terms proposed by Valvoline for the Right of Re-Entry and the time-frame. Staff is more comfortable recommending the the Take 5 project based on its adherence to the City form of the deal,namely agreeing to the Standard City Right of Re-Entry Agreement. Staff believes that the Valvoline site plan has its advantages and has asked Take 5 whether they would be willing to swap building locations on their site as well. Alternatives: 1)Recommendation to City Council to approve Purchase Agreement and Right of Re-Entry Agreement with Garage RE LLC (Take 5), or Midland Atlantic Development Company(Valvoline) (as presented); subject to City Attorney review.