Agenda - Council - 02/24/2026 - Laserfiche WebLink

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CC Regular Session 5. 13. Meeting Date: 02/24/2026 By: Sean Sullivan, Community Development Title: Adopt Resolution #26-052 Approving Amended and Restated Right of Re -Entry Agreement: Blanery LLC Purpose/Background: Blanery LLC purchased Unplatted real property with a Tax ID number of 27-32-25-44-0003 from the City of Ramsey on March 10, 2025. The closing required the filing of a Right of Re -Entry Agreement requiring a Certificate of Occupancy for a 8,500 square foot building by March 10, 2025. Substantial progress has been made on the project with walls up and work is ongoing but the finish date is likely later in the Fall of 2026. Just to be safe, Blanery has asked the City to extend the Certificate of Occupancy date identified in the recorded Right of Re -Entry Date from March 10, 2026 to December 31, 2026. The purpose of the Right of Re -Entry Agreement is to prohibit land speculation and to guarantee a certain type of development to occur when the City sells City -owned property. Based on the substantial construction completed so far, it is clear that the Developer is not holding the land for speculation purposes and is acting in good faith to complete the project. The current recorded Right of Re -Entry Agreement has two remedies that the City could exercise upon Blanery LLC in the event that a Certificate of Occupancy is not issued by March 10, 2026. One option is to re-enter the property and take possession. The other option would be to impose a $50,000 penalty on the Developer and to let the Developer retain the property. In the event that an Amended and Restated Right of Re -Entry Agreement is not approved, the Council should be prepared to exercise a remedy as outlined below in Observations. However, Based on the substantial completion and ongoing construction of the project, Staff recommends approval of the Amended and Restated Right of Re -Entry Agreement and not to exercise remedies in the existing Right of Re -Entry Agreement. Notification: Notification is not required. Observations/Alternatives: Observations: Blannery LLC is requesting the Certificate of Occupancy date in the recorded Right of Re -Entry Agreement be changed from March 10, 2026 to December 31, 2026. Although it is possible that the project could be completed much sooner than the requested December 31, 2026 date, Staff supports the longer time frame based on previous delays (late start, weather, materials and contractor availability) to the project and to provide some flexibility if there are other unforeseen delays. Alternatives: Option 1 - Approve Extension of CIO in Right of Re -Entry Agreement from March 10, 2026 to December 31, 2026 1. Motion to approve the Amended and Restated Right of Re -Entry Agreement (as presented); subject to City Attorney review. (Staff Recommendation) 2. Motion to approve the Amended and Restated Right of Re -Entry Agreement (with changes); subject to City Attorney review. 3. Something else. Or;