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Economic Development Authority (EDA) <br />Meeting Date: 05/14/2026 <br />Primary Strategic Plan Initiative: Promote economic growth and development. <br />4. 2. <br />Title: <br />Consider Sale of City Land to LH Road, LLC (Wildlife Research Center) for Building Expansion <br />Purpose/Background: <br />The EDA may choose to go into closed session pursuant to Minnesota Statutes section 13D.05, subdivision <br />3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the EDA chooses <br />to enter into to closed session the statute and reason above needs to be referenced along with legal description <br />(Tract B, Registered Land Survey No. 251) and the Anoka County Tax ID number 27-32-25-41-0025. <br />The purpose of this case is to consider the sale Tract B, Registered Land Survey No. 251 to LH Road, LLC <br />(Wildlife Research Center) to expand business operations. The business expansion project includes two buildings <br />that will be built in sequence. The first building to be constructed is a 13,500 SF Warehouse building that will be <br />constructed fully on Tract B. This project will commence this summer. The second building is a 36,000 SF <br />addition onto its existing 40,000 SF building for warehousing, shipping and manufacturing. The total project <br />costs are estimated to be approximately 5.1 Million. The second building needs to commence construction during <br />the "non -busy" season for Wildlife Research Center which is planned for December of 2026. In the event that <br />materials, the platting or city approvals are not obtained on time, the 36,000 SF Building expansion could be <br />pushed to December of 2027. Only the 13,500 SF building will be subject to the terms and conditions of the <br />Right of Re -Entry Agreement. <br />Lot Conditions / Sale Price <br />Currently the site is vacant, contains two MPCA monitoring wells and city and MPCA Stormwater infrastructure. <br />The site has a huge depression in the middle and is not buildable based on existing infrastructure and topography. <br />Based on these conditions the site has not been marketed and has no value in its current condition. Adjacent <br />property owners are the only ones that have the potential to utilize the parcel but it would come at a very large <br />cost. Staff has been in contact with both adjacent landowners (Ztech and WRC) and Z-tech is comfortable with <br />the development proposed by WRC.(See attached letter) A cost estimate to import and compact dirt, construct <br />retaining walls, demo and install storm water piping and to enlarge the regional storm totaling $640,130 to <br />prepare the site for development has been provided by RJ Ryan. The site is proposed to be sold for $1.00 based <br />on the existing conditions and the extraordinary cost required to accommodate the construction of both buildings. <br />Based on the existing condition of the site, selling it for the price of $1.00 does not constitute a business subsidy. <br />This has been supported by the information provided above and review by the City Bond attorney from TAFT <br />Law. <br />MPCA and Stormwater Infrastructure <br />Staff began discussions on the viability of development of this site with the MPCA, WRC, RJ Ryan, City <br />Engineering Staff and the neighboring landowners. Initial feedback, and subsequent feedback from the MPCA <br />was supportive of the development of the site as long as the monitoring wells and MPCA infrastructure was not <br />negatively impacted. RJ Ryan worked with Hakanson Anderson and the City Engineer to evaluate the stormwater <br />infrastructure to identify what was needed to accommodate the future development and preserve functional city <br />stormwater solutions. RJ Ryan has found a stormwater solution that includes the installation and relocation of <br />existing stormwater pipes and the oversizing of an existing stormwater pond. LH Road, LLC will need to be <br />obtain formal approvals from the MPCA on the development plan. <br />Notification: <br />