Agenda - Economic Development Authority - 03/14/2024

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Economic Development Authority (EDA) Meeting Date: 03/14/2024 Primary Strategic Plan Initiative: { 4a,! Aud_pd84a,! 4a,1 4. 1. Title: Consider Approval of Purchase Agreement and Right of Re -Entry Agreement for 6591 141st Avenue NW; Case of Blanery LLC (portions of the meeting may be closed to the public) Purpose/Background: The purpose of this case is to consider an EDA recommendation to the City Council to sell 6591 141st Avenue NW (Tax ID 27-32-25-44-0003) (approximately 0.95 acres) to Blanery LLC (the "Developer") to construct a minimum 8,500 SF, two level auto body shop with offices above.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 the address (6591 141st Avenue NW Ramsey, MN 55303), legal description (a portion of the N 200 feet of the South Half of Southeast Quarter of Section 27, Township 32, Range 25) and the Anoka County Tax ID n u mber27-32-25-44-0003. This property was acquired by TIF/CDBG Funds for redevelopment in 2006 for $211,200. CDBG funds were used to demolish the building and grub trees in 2008. The property is listed for $105,000 and the Buyer's offer is for the full sale price. It should be noted that there is a monitoring well on the SW corner of the property that cannot be moved (from St. Paul Terminal remediation project) which also factors into the sales price of $2.54/SF. The proposed 8,500 SF, two level building will maximize the development of the site. The proposed use of auto body repair and office is allowed in the I-1 zoning district with a conditional use permit. Planning Staff has reviewed the preliminary site plan and generally supports the site layout. The purchase price is at the top of the "Deal Range" which is the full asking price for this parcel. Notification: None required Time Frame/Observations/Alternatives: This site has been marketed since the demolition of the building in 2007. Staff has received interest from adjacent land -owners and others over the past 15 years but nothing has moved forward to the level of a purchase agreement. Staff is supportive of this business use in this location and the developer is committed to screening the site. The sale of this property will bring this property back onto the tax rolls. Staff has estimated the tax -assessed value to be approximately 1.4M when completed, which results in approximately $36,000 in annual total property taxes, $10,000 being collected by the City. Expected job creation on the site is estimated to be 6 FT employees at the body shop and an additional 15 PT employees utilizing the offices upstairs. This is a solid project that results in the creation of tax base and jobs which is the mission of the EDA. Aliaksandr Blashchanitsa from Blanery LLC will be in attendance to provide more details relating to the proposed project and to answer questions the EDA may have. Project Highlights Project Description - 8,500 SF Auto Body Shop / Office Job Creation - 6 FT Employees at Body Shop up to 15 additional PT employees in the upstairs offices