Consider First Amendment to Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at COR; Case of COR Trust Bank
(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 C, Affinity at the COR) and the Anoka County Tax ID number 28-32-25-24-0017.

The EDA met August 11, 2022 and adopted a motion to City Council recommending approval of a purchase agreement with COR Trust Bank to build in the COR.  The City Council City of Ramsey approved the Purchase Agreement and Right of Re-Entry Agreement through adoption of Resolution #22-186.   Staff has reviewed the proposed layout and has requested more detailed information relating to building size, materials, access points and some preliminary building elevations. Staff has communicated some concerns with the site plan in regards to the location of the proposed access to Sunwood Drive and multiple drive-thrus.  Staff has conveyed the requirements of the COR and building height along Sunwood Drive to the Developer.  The buyer had some problems with its civil engineer/architect relating to licensing in Minnesota that has set back this project a few months.  The Buyer has requested that the City extend the "Inspection Period" one month to try to work through some site plan concerns/concepts and to get more feedback from City staff before a decision to submit formal site plan submittal is made.  Extending the Inspection Period from March 30, 2023 to April 30, 2023 is the key item being amended through the First Amendment to Purchase Agreement.  

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 preliminary site concept plan is attached.  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	211 days from Effective Date (Date City Council Approves) (city requires plat/ site plan approval before sale). (Extended from March 30, 2023 to April 30, 2023)
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. Recommendation to City Council to approve First Amendment to Purchase Agreement and Right of Re-Entry Agreement as presented. (Staff recommendation)
2. Recommendation to City Council to approve First Amendment to Purchase Agreement and Right of Re-Entry Agreement with changes.
3. No Action (Keeps the current Purchase Agreement in place)
4. Something else.

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

Staff recommends a recommendation to the City Council to approve First Amendment to Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at COR (as presented); subject to City Attorney review.

As noted above, Planning Commission has yet to review this site concept. This will be handled during the site plan/plat application process and could change.  

Motion to recommend that the City Council to approve First Amendment to Purchase Agreement and Right of Re-Entry Agreement for Part of Outlot C, Affinity at COR (as presented); subject to City Attorney review.