Agenda - Economic Development Authority - 12/12/2024

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Economic Development Authority (EDA) Meeting Date: 12/12/2024 Primary Strategic Plan Initiative: Promote economic growth and development. 4. 1. Title: Consider Recommendation of Approval of Purchase Agreement and Right of Re -Entry Agreement for Part of Outlot D, Waterfront Village: Case of Capital Real Estate, Inc. Purpose/Background: The purpose of this case is consider a recommendation to the City Council to execute a purchase agreement and right of re-entry agreement for the sale and development of part of Outlot D, Waterfront Village to Capital Real Estate, Inc. 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 (Outlot D, Waterfront Village) and the Anoka County Tax ID number 28-32-25-22-0107. Over the past year, Staff has been working with multiple developers, Anoka County and the City Planning division to develop a site concept that maximizes the development of the northeast corner of Sunwood Drive NW and Armstrong Blvd NW (Outlot D, Waterfront Village). At the October 10, EDA meeting, three proposals were reviewed and direction was given to staff to work exclusively with Capital Real Estate, Inc. on a purchase agreement to develop approximately 3.17 acres that includes a Chipotle restaurant on the corner and other retail / QSR users for the rest of the site. Staff has worked with the Developer and City Attorney over the past two months on the purchase agreement and right of re-entry agreement and they are presented for review and action by the EDA. Notification: N/A Time Frame/Observations/Alternatives: Staff is excited to announce that a Purchase Agreement and Right of Re -Entry Agreement have been negotiated with Capital Real Estate, Inc. The Development project requires the construction of a Chipotle Restaurant on the NE Corner of Sunwood Drive and Armstrong Blvd in 2025. The Developer has indicated they have another Quick Service Restaurant (QSR) lined up for the parcel just north of Chipotle as well to be built at the same time. The City of Ramsey has prepared the site for development with the COR mass grading project and listed it at $8.00 per square foot. The triangular site has difficulties being bordered on the east by a large wetland complex and Armstrong Boulevard on the east but it has great visibility and traffic count information (over 10,000 ADT's). The Site being sold includes land on the southeast corner of Bunker Lake Blvd and Armstrong Blvd to allow for onsite development signage with is required by City Sign Code. The Developer will work through the formal platting and signage process with the planning commission to ensure compliance. The acreage of 3.34 acres shown in the Purchase Agreement and graphic includes area to connect the northerly parcel to the corner for a pylon sign for the development. The area to potentially builds a sign is very small and might not be viable once further research is done. In the event that this area will not work for a sign there is another 3.17 acre scenario with a reduced price that the buyer would revert to. The offers range from $6.74 to $7.00 per square foot which are within the approved deal range. All of the acreages and pricing are subject to Final Plat. If the EDA chooses to enter into closed session the statute and reason above needs to be referenced along with legal description (Outlot D, Waterfront Village) and the Anoka County Tax ID number 28-32-25-22-0107.