Consider Purchase Agreement and Sale of Part of Outlot B, COR Five to CorTrust Bank N.A. (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 (Part of Outlot B, COR FIVE) and the Anoka County Tax ID number 28-32-25-24-0020.

The purpose of this case is to reconsider the sale of Part of Outlot B, COR FIVE to CorTrust Bank, N.A. to developer A 5,000 sf Bank.  The City of Ramsey and Dean Suchy, Market Manager, from CorTrust Bank, have been in recent discussions with Staff to re-visit developing a bank in the COR. This is a project that has previously received an EDA recommendation the City Council for approval in August of 2022, but it ultimately was not approved by the City Council.  Below is some reference to past actions by the City Council.

At the July 11, 2023 City Council Meeting, the property was rezoned to COR-2b which permitted the bank use, but the Site Plan recommended for approval from the Planning Commission was not approved by the past Council (voted down 4-3) for a number of reasons outlined in the attached minutes.  The proposed Zeolite Street driveway entrances/exits shown on the site would line up with the access constructed by the Hilton Home2 Suites.   The proposed building architecture meets/exceeds COR zoning standards and will look sharp on the corner.  A copy of the staff report from the July 11, 2023, CC meeting is attached as historical reference for this case.  COR-2b zoning requires a Conditional Use Permit to accommodate the drive-thrus which would run concurrently with the Site Plan and Plat. The new project proposed is generally the same as what was brought forward previously, aside from the recommendation by the City Council to retain the future development site north of the proposed bank at the January 14, 2025 Work session. The project site has room for a small second building to the north that could be sold to another developer and constructed at a later date. (see attached combined site plan).  Staff is suggesting a Right of Re-Entry Agreement for construction of the 5,000 SF CorTrust bank which is typical for COR Development Agreements.  

Over a year has lapsed since this item was reviewed by the City Council, so it can be brought back again through the City process for consideration without the need for a council member that voted to reject the previously submitted site plan bringing it forward.  As referenced above, the City Council met at Work session on January 14th and the consensus was to support the project moving forward with the city retaining the land north of the bank site.  CorTrust will be responsible for construction all internal roadways and access to Zeolite St NW at the cost of the bank.   Mr Suchy has communicated to Staff that CorTrust Bank previously invested at least $75,000 into the previous project submittal which was not approved.

None required

Attached to this case is a preliminary layout of the bank reviewed previously.  A second layout shows an example of a second small building to the north of the bank on land the City is proposing to retain under this new site plan.  Staff has reviewed the proposed layout(s) 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 City and Buyer have agreed to the following items on the Term sheet listed below:

Real Estate -Tax ID Number: Portion of 28-32-25-24-0020. Part of Outlot B, COR FIVE (Part of Parcel 48A)
Acreage - Approximately + / - 0.73 acres or (31,799 SF) Subject to Final Plat
Asking Price - $190,794 ($6.00 / SF) (SF Subject to change based on approved Plat)
Offer Price - $190,794 ($6.00 / SF) (SF Subject to change based on approved Plat)
Earnest Money - $10,000. Non-refundable upon Notice to Proceed being executed.
Inspection Period - 180 days from the later of Effective Date (Date City Council approves) or a fully executed PA is delivered to buyer (city requires plat/ site plan approval before sale)
Closing - Within 30 days of Notice to Proceed.
Commission - This was a City generated lead for a CBRE Listed property. Per the terms of the listing agreement, the City will pay 3% of gross sales price to CBRE.
Extensions to Close - Buyer will deposit $10,000.00 in escrow for each 60-day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.
City take care of - Provide existing ALTA Survey and updated Title Work. The Buyer will contract to plat the property as part of the site plan process.
Performance - City to require construction of commercial/retail buildings compliant with COR Zoning requirements and obtain a Certificate of Occupancy 16 months after Closing. The Buyer will enter into a Right of Re-Entry Agreement with minimum building square footage requirements of 5,000 SF. The Buyer will also construct all internal roadways onsite for the drive-thru and north access to Zeolite Street NW at the cost of the Buyer. The City may exercise the Right of Re-Entry if performance requirement is not met.
Assignment - Requires city approval if not same owners / company.
Contingencies - None at this time
Review 

• EDA (Sean): Land Transaction/ Purchase Agreement/ Right of Re-Entry
• Planning Commission - (Staff To Be Determined): Land Use, Development Agreement, Site Plan, Plat
• City Council: Final Approval on both items

Alternatives include:
1) Recommendation to City Council to approve Purchase Agreement and Right of Re-Entry Agreement with CorTrust Bank for the Sale and Development of Part of Outlot B, COR FIVE (as presented) Subject to City Attorney Review
2) Recommendation to City Council to approve Purchase Agreement and Right of Re-Entry Agreement with CorTrust Bank for the Sale and Development of Part of Outlot B, COR FIVE (with changes) Subject to City Attorney Review
3) Something else
 

N/A