Consider Purchase Agreement and Sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) (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 A, Java Auto Parts) and the Anoka County Tax ID number 28-32-25-41-0024.  This parcel is also known as Parcel 50c.

The purpose of this case is to consider the sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) to build a 664 sf coffee shop.  The City of Ramsey, CBRE and representatives from the Developer have negotiated the attached Term Sheet, PA and Right of Re-Entry for EDA review. The site is properly zoned for the proposed use. This project will need a drive-thru which will require a conditional use permit.  

None required

Attached to this case is a preliminary layout of the Scooters Coffee site. 

The City and Buyer have negotiated the following items on the Term sheet listed below:

Real Estate        Tax ID Number: Portion of 28-32-25-41-0024. Part of Outlot A, Java Auto Parts (Part of Parcel 50C)
Buyer                  Harlow Becket Enterprises LLC, a Minnesota limited liability company
Acreage              Approximately + / - 0.76 acres Subject to Final Plat 
Asking Price      $265,000 ($8.00 / SF) (SF Subject to change based on approved Plat)
Offer Price         $265,000 ($8.00 / 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        Per the terms of the City listing agreement with CBRE, the City will pay 4% of gross sales price to CBRE and 3% to Turpin Realty, INC.
Extensions to Close    Buyer will deposit $5,000.00 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 for parent site and updated Title Work. The Buyer will contract to plat the property as part             of the Land Use application process. 
Performance            City to require construction of commercial/retail buildings compliant with COR Zoning requirements and obtain a Certificate of Occupancy 12 months after Closing.  The Buyer will enter into a Right of Re-Entry Agreement with minimum building square footage requirements of a 664 SF Scooter’s Coffee Shop. The Buyer will also construct all internal roadways onsite for access to Sunwood Drive 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. Site sold “as-is”

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

Alternatives include:
1) Recommendation to City Council to approve Purchase Agreement, Right of Re-Entry Agreement and Sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) (as presented) Subject to City Attorney Review
2) Recommendation to City Council to approve Purchase Agreement, Right of Re-Entry Agreement and Sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) (with changes) Subject to City Attorney Review
3) Something else
 

N/A

Recommendation to City Council to approve Purchase Agreement, Right of Re-Entry Agreement and Sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) (as presented) Subject to City Attorney Review

Motion to recommend to City Council to approve Purchase Agreement, Right of Re-Entry Agreement and Sale of Part of Outlot A, Java Auto Parts to Harlow Beckett Enterprises LLC (Scooters Coffee) (as presented) Subject to City Attorney Review