Agenda - Economic Development Authority - 08/08/2024

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approvals. Staff does not recommend a full refund of the purchase price as Stories Foundation has had site control since October 29. 2020 as documented in the oriainal Purchase Aareement and the City has incurred costs and foreaone potential tax revenue. Site control does come with a cost and the duration of approximately 3.5 years that Stories Foundation has had site control (property off the market. no property tax aeneration) should involve some compensation to the City if a partial refund is to be considered. Staff has consulted with a local relator and a reasonable Option cost for a $67.953.60 land purchase for a 3.5 year duration would be $10.000 to $15.000. The City also paid CBRE $2.038.60 in commission and $1.619.25 in closina costs (total of $3.657.851 for the land transaction. These costs (Settlement Statement attached) incurred by the City should also be considered. Another option would be to allow Stories Foundation to keep the land for a future proiect. the City to impose a $50.000 assessment to the property. or to sell it or develop it at a later date. However. Staff is not supportive of this option as the City would run the risk of the property never beina developed or beina sold to a proiect/owner/use that the City does not support. In the past. the City has taken the position that it will not sell land for speculative purposes. Staff has worked with Stories Foundation for nearly four years and believe that they have done evervthina humanly possible to brina the proiect to market in Ramsey. Unfortunately. the proiect has not materialized in Ramsey and Stories Foundation has decided to search for another more cost-effective solution elsewhere. Below are some alternatives the EDA could consider for a recommendation for action: 1) Exercise Riaht of Re -Entry Aareement and reauest deed of conveyance from Stories Foundation to the City of Ramsey at no cost to the City (No refund per Riaht of Re -Entry Aareement) 2) Exercise Riaht of Re -Entry Aareement and reauest deed of convenance from Stories Foundation to the City of Ramsey and to refund entire purchase price of $67.953„60 (Stories Foundation Reauest) 3) Exercise Riaht of Re -Entry Aareement and reauest deed of conveyance from Stories Foundation to the City of Ramsey and to refund $49,295.75 - $54,295.75, or another amount (Select) to Stories Foundation (Hypothetical Option / closina costs / CBRE commission / Opportunity Cost) 4) Execute Riaht of Re -Entry Aareement and choose the option to impose a $50.000 Special Assessment on the property and allow Stories Foundation to keep the property 5) Somethina Else Funding Source: The City has netted $65,005.75 in revenue from the land transaction. If a refund were to be issued to Stories Foundation, it would come from 9295.1420 - Land held for resale account. Recommendation: Based on Discussion Exercise Right of Re -Entry Agreement and request deed of conveyance from Stories Foundation to the City of Ramsey and to refund $49,295.75 - $54,295.75, or another amount (Select) to Stories Foundation (Hypothetical Option / closing costs / CBRE commission / Opportunity Cost) Outcome/Action: 1) Exercise Right of Re -Entry Agreement and request deed of conveyance from Stories Foundation to the City of Ramsey at no cost to the City (No refund per Right of Re -Entry Agreement) OR 2) Exercise Right of Re -Entry Agreement and request deed of convenance from Stories Foundation to the City of Ramsey and to refund entire purchase price of $67,953.60 (Stories Foundation Request) OR 3) Exercise Right of Re -Entry Agreement and request deed of conveyance from Stories Foundation to the City of Ramsey and to refund $49,295.75 - $54,295.75, or another amount (Select) to Stories