Consider Purchase Agreement  and right of Re-Entry Agreement for Lot 4, Block 1, Riverside West; Case of Reliable Holdings, LLC
(Portions may be closed to the public)

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 to closed session the statute and reason above needs to be referenced along with legal description (Lot, 4, Block1, Riverside West) and the Anoka County Tax ID number 34-32-25-13-0005.

The City of Ramsey and Blue Line Collision (Reliable Holdings, LLC) have been in discussions over the past 3 years regarding the future of their company in Ramsey.  We have reviewed renovation and redevelopment options on his site and other future locations. With Hwy 10 improvements imminent and a commitment by Anoka County to acquire Blue Line Collision, the owner has decided it is his preference to relocate to another location in Ramsey.  Staff is excited at the possibilities of helping an existing Ramsey business to grow in our community.

Blue Line Collision is interested in purchasing 6710 Hwy 10 NW (former Bookstore site) and constructing a new 10-12,000 square foot autobody repair center.  The offer for the the soon to be platted 1.46 acre site is $200,000 ($3.12/SF).  The listing price for this parcel is $255,884 ($4.00 / SF).  There are underlying utilities (Natural Gas/Cable) that possibly will need to be relocated based on the site plan layout.  The cost for the relocation of utilities will be the responsibility of the Buyer.  Reliable Holdings, LLC has agreed to the terms of the attached Purchase Agreement and Right of Re-Entry Agreement  The proposed purchase price is within the City's approved deal range for this parcel.

The proposed purchase agreement includes a simple development concept and likely will need some revisions to receive full site plan approval.   Staff received confirmation from the Zoning Administrator that the proposed use would be allowed with a Conditional Use Permit.  The Planning Commission will still need to review the site plan to ensure the layout is consistent with city zoning and code.  The time periods, and extensions outlined in the term sheet and PA are consistent with recent PA templates aside from the requirement for a Certificate of Occupancy being 16 months rather than the usual 12.  The change is due to the longer timeframes the construction industry is seeing for concrete tip-up panels and structural steel.

Notification is not required.

Observations:  The proposed site will be 1.46 acres upon completion of the Final Plat and Vacation of Dolomite St NW.  The purchase price is $200,000 ($3.12 / SF). This price is within the approved "deal range".   A copy of the preliminary site plan is attached.  This was a city generated lead for a city listed city parcel.  There is no commission for transaction.

The following items are worth highlighting:
 

Earnest Money	$20,000, Nonrefundable after a Notice to Proceed has been given by the Buyer.
Inspection Period	180 days from Effective Date (Date City Council Approves) (city requires plat/ site plan approval before sale).
Closing	Within 30 days of Notice to Proceed.
Extensions	Developer will deposit $10,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.
Performance	City to require construction of a minimum 10,000 SF building and obtain a Certificate of Occupancy 16 months  after Closing.  If this is not done, the City may exercise the Right of Re-Entry.

Alternatives:

1. Recommendation to City Council to approve Purchase Agreement and Right of Re-Entry Agreement as presented. (Staff recommendation)
2. Recommendation to City Council to approve Purchase Agreement and Right of Re-Entry Agreement with changes.
3. Something else.

This case is being handled as part of normal Staff duties.

Staff recommends a recommendation to the City Council of the attached Purchase Agreement and Right of Re-Entry Agreement as presented, subject to City Attorney review.

As noted above. Planning Commission has yet to review this site concept so this will be handled during the site plan application process and is likely to change.

Motion to recommend that the City Council approve the attached Purchase Agreement and Right of Re-Entry Agreement for Purchase Agreement for Lot 4, Block 1, Riverside West, subject to City Attorney review.