Adopt Resolution #23-125 Approving Second Amendment to Purchase Agreement and Right of Re-Entry Agreement for Ramsey Properties, LLC (A portion of this meeting may be closed to 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 closed session, the statute and reason above needs to be referenced along with legal description (Part of Outlot A, COR TWO) and the Anoka County Tax ID number 28-32-25-22-0058.

The purpose of this case is to consider approval of the Second Amendment to Purchase Agreement and Right of Re-Entry Agreement that involves the sale of Outlot A, COR TWO to Ramsey Properties, LLC (the "Developer").  The Developer has requested that the Inspection Period be extended from May 26, 2023 to June 30, 2023 to allow for the June 13, 2023 public hearing for the business assistance process to be completed and to ensure that the proposed assistance is granted.  The EDA and City Council have previously approved a Purchase Agreement and a First Amendment to Purchase Agreement to build a 98 unit Hilton Home 2 hotel and a proposed non-binding deal structure involving $434,511 in TIF Land Cost Write down and $550,000 in TIF Pay-Go Site Development and improvements. The terms of the proposed TIF assistance being requested and project definition remain unchanged.

Notification is not required.

Staff is asking the City Council to consider a recommendation of approval of the Second Amendment to Purchase Agreement to extend the Inspection Period from May 26, 2023 to June 30, 2023 and approval of the Right of Re-Entry Agreement.

General Project Description 

• 98 unit, Four Story Hilton Home 2 Hotel with hot breakfast and indoor pool; a Certificate of Occupancy 16 months after Closing.  If this is not done, the City may exercise the Right of Re-Entry. 
• Estimated Tax Assessed Value 7.14M 
• Estimated Taxes - $218,000 annually 
• 11 new jobs to be created paying at least $14.75 / hr.
• Must operate at location for 5 years
• Catalyst project (provides more trips to COR and encourages investment in restaurants/retail)

Site Plan and Plat Approval
Site Plan and Preliminary Plat approval was granted by the City Council on May 9, 2023.   Final Plat and Development Agreement approval is to be considered by the City Council on June 13, 2023 or a later date.

Right of Re-Entry Agreement
The City requires the developer to enter into a Right of Re-Entry Agreement per the terms of the Purchase Agreement.  A Right of Re-Entry Agreement has been drafted for consideration of approval by the City Council.  The Right of Re-Entry Agreement includes "Act of God" Language as well as a requirement to terminate the Right of Re-Entry Agreement once the Developer responsibilities are met.

Alternatives:
1) Approval of Resolution #23-125 Approving Second Amendment to Purchase Agreement and Right of Re-Entry Agreement for Ramsey Properties, LLC (as presented); subject to City Attorney Review (Staff/EDA recommendation).
2) Approval of Resolution #23-125 Approving Second Amendment to Purchase Agreement and Right of Re-Entry Agreement for Ramsey Properties, LLC (with changes); subject to City Attorney Review. 
3) Something else.

 

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

The EDA recommended approval of the 2nd Amendment to Purchase Agreement at the June 8, 2023 meeting.

Staff has provided a draft Right of Re-Entry Agreement as outlined in the Purchase Agreement for consideration by the City Council.
 

Motion to adopt Resolution #23-125 Approving Second Amendment to Purchase Agreement and Right of Re-Entry Agreement for Ramsey Properties, LLC