Agenda - Council - 08/27/2024 - Laserfiche WebLink

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Staff understands the challenges of a non-profit and the value of cash to move forward the mission of the organization. Based on this, Staff is supportive of a partial refund based on the non-profit nature of this business and Stories Foundation acting in "good faith" with the recent actions related to Site plan 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 forecione 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 Cityif 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 closing costs (total of$3,657.85) 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 project, the City 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 being sold to a project/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 everything humanly_possible to bringproject to market in Ramsey. Unfortunatelyproject has not materialized in Ramsey and Stories Foundation has decided to search for another more cost-effective solution elsewhere. Below are some alternatives the City Council could consider for 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 Riaht of Re-Entry Aareement) 2) Exercise Right of Re-Entryareement 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) 3) Exercise Right of Re-Entry areement 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) (EDA/STAFF Recommendation) 4) Execute Right of Re-Entryareement and choose the option to impose a $50,000 Special Assessment on the property and allow Stories Foundation to keep the property 5) Something Else Funding Source: If a refund were to be issued to Stories Foundation, it would come from 9295.1420 -Land held for resale account. Recommendation: The EDA met on August 8th,2024 and unanimously passed a motion to recommend to City Council to exercise Right of Re-Entry Agreement and request deed of conveyance for Outlot B, Stone Brook Academy from Stories Foundation to the City of Ramsey and to refund$49,295.75 to Stories Foundation. A copy of the draft minutes are attached to this case. Staff recommends that this recommendation be contingent on proof of clear title (no liens or encumbrances) Outcome/Action: