Adopt Resolution #22-186 Approving Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at the COR; Case of COR Trust Bank (Portions may be closed to the public)

The City Council 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 City Council chooses to enter into to closed session the statute and reason above needs to be referenced along with legal description (Part of Outlot C, Affinity at the COR) and the Anoka County Tax ID number 28-32-25-24-0017.

The City of Ramsey and JB Vang (Broker for COR Trust Bank) have been in discussions to develop a bank in the COR.  Staff has received a preliminary sketch identifying the location of the proposed bank and generic site layout.  Staff has reviewed the proposed layout and has requested more detailed information relating to building size, materials and some preliminary building elevations. Staff is generally acceptable to the site plan and has conveyed the requirements of the COR and building height along Sunwood Drive to the Developer.  The Buyer has requested that the City give site control through execution of a Purchase Agreement so it can start "spending money" on building design, site engineering and project costs to better define the project.

The Planning Commission will still need to review the formal site plan to ensure the layout is consistent with COR 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 obtaining building materials.

Notification is not required.

Observations:  The proposed site will be  +/- 1.5 acres upon completion of the Final Plat.  Based on a proposed building size of 3-5000 SF, Staff believes that the site acreage may ultimately be reduced when a site plan is completed.  The purchase price is $392,040 ($6.00 / SF). This price per/SF is within the approved "deal range".   A copy of the very preliminary site concept plan is attached as well as some preliminary building renderings.  This was a city generated lead for a city listed city parcel so CBRE and JB Vang will each receive 3% commission.  

The following items are worth highlighting:
 

Earnest Money	$10,000, 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 3-5000 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 Agreement.

Alternatives:

1. Adopt Resolution #22-186 Approving Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at the COR as presented.; subject to City Attorney Review 
2. Adopt Resolution #22-186 Approving Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at the COR with changes; subject to City Attorney Review
3. Something else.

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

The EDA met on August 11, 2022 and unanimously recommended that the City Council approve 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 Adopt Resolution #22-186 Approving Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at the COR, subject to City Attorney review.