Agenda - Council - 02/26/2024 - Laserfiche WebLink

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CC Regular Session 7. 1. Meeting Date: 02/26/2024 By: Sean Sullivan, Community Development Information Title: Adopt Resolution #24-061 Approving Purchase Agreement and Right of Re -Entry Agreement for Lot 2, Block 1, COR FOUR; Garage RE LLC (Take 5) (Portions may be closed to the public) Purpose/Background: Purpose: The purpose of this case is to consider entering into a purchase agreement with Garage RE LLC (Take 5) to purchase and develop an oil change business onLot 2, Block 1, COR FOUR. The EDA 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 EDA chooses to enter into closed session, the statute and reason above needs to be referenced along with legal description (Lot 2, Block 1, COR FOUR) and the Anoka County Tax ID number 28-32-25-23-0023. Background: City Staff has been working with Take 5 and Valvoline for over 6 months. Both have expressed interest in developing the 1.16 acre site south of the Aldi under construction. Staff has reviewed the two proposals and they are similar for the purchase price and the request to discount the purchase price for construction of a required parking lot south of the site of the oil change development. However, there were significant differences related to the willingness to enter into a Right of Re -Entry Agreement. Take 5 is willing to enter into our standard city Right of Re-entry Agreement for their oil change development and Valvoline is not. Take 5 has provided a site plan showing the oil change business and a future development of the remnant parcel. Based on the unwillingness for Valvoline to enter into a typical City Right of Re -Entry Agreement the EDA made a formal recommendation to move forward with the Purchase Agreement with Garage RE LLC (Take 5). Both parties offered $404,236 ($8.00/SF), full listing price, and asked for a discount for an offsite parking lot that will be required as part of the development of this parcel. Parking Lot Construction The First Amendment to Declaration of Easements, Covenants and Restrictions for COR Two requires the City/Future Developer to construct a 20 space parking lot north ofNorthstar Marketplace when Lot 1, Block 1 COR Two (now generally Lot 2, Block 1, COR FOUR) develops. Staff received two estimates for this offsite construction and the pricing averaged $125,000 in additional expense for the developer. Staff has deducted $125,000 from the Purchase Price of $404,236 for a net of $279,236 included in the proposed Purchase Agreement with Garage RE LLC (Take 5). Take 5 has agreed to construct this additional parking lot as part of their 1,800 square foot oil change development. It should be noted that Take 5 is working with multiple users to develop the remnant parcel. Notification: Notification is not required. Observations/Alternatives: