Consider Sale of City Land to LH Road, LLC (Wildlife Research Center) for Building Expansion

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 (Tract B, Registered Land Survey No. 251) and the Anoka County Tax ID number 27-32-25-41-0025.

The purpose of this case is to consider the sale Tract B, Registered Land Survey No. 251 to LH Road, LLC (Wildlife Research Center) to expand business operations. The business expansion project includes two buildings that will be built in sequence.  The first building to be constructed is a 13,500 SF Warehouse building that will be constructed fully on Tract B.  This project will commence this summer.  The second building is a 36,000 SF addition onto its existing 40,000 SF building for warehousing, shipping and manufacturing.  The total project costs are estimated to be approximately 5.1 Million.  The second building needs to commence construction during the "non-busy" season for Wildlife Research Center which is planned for December of 2026.  In the event that materials, the platting or city approvals are not obtained on time, the 36,000 SF Building expansion could be pushed to December of 2027.  Only the 13,500 SF building will be subject to the terms and conditions of the Right of Re-Entry Agreement.

Currently the site is vacant, contains two MPCA monitoring wells and city and MPCA Stormwater infrastructure.  The site has a huge depression in the middle and is not buildable based on existing infrastructure and topography.  Based on these conditions the site has not been marketed and has no value in its current condition.  Adjacent property owners are the only ones that have the potential to utilize the parcel but it would come at a very large cost.    Staff has been in contact with both adjacent landowners (Ztech and WRC) and Z-tech is comfortable with the development proposed by WRC.(See attached letter)  A cost estimate to import and compact dirt, construct retaining walls, demo and install storm water piping and to enlarge the regional storm totaling $640,130 to prepare the site for development has been provided by RJ Ryan. The site is proposed to be sold for $1.00 based on the existing conditions and the extraordinary cost required to accommodate the construction of both buildings.  Based on the existing condition of the site, selling it for the price of $1.00 does not constitute a business subsidy.  This has been supported by the information provided above and review by the City Bond attorney from TAFT Law.

Staff began discussions on the viability of development of this site with the MPCA, WRC, RJ Ryan, City Engineering Staff and the neighboring landowners.  Initial feedback, and subsequent feedback from the MPCA was supportive of the development of the site as long as the monitoring wells and MPCA infrastructure was not negatively impacted.  RJ Ryan worked with Hakanson Anderson and the City Engineer to evaluate the stormwater infrastructure to identify what was needed to accommodate the future development and preserve functional city stormwater solutions.  RJ Ryan has found a stormwater solution that includes the installation and relocation of existing stormwater pipes and the oversizing of an existing stormwater pond.  LH Road, LLC will need to be obtain formal approvals from the MPCA on the development plan.

The City Council is considering introduction of a Sales Ordinance for Tract B RLS No. 251 at the May 12, 2026 Meeting.

The Terms of the proposed Purchase Agreement are below:

Real Estate     Tax ID Number: 27-32-25-41-0025. Tract B, Registered Land Survey No. 251 Anoka County, Minnesota
Address     Undetermined - Ramsey, MN 55303
Acreage      Approximately 1.93 acres or 84,071 SF
Asking Price      $1.00
Offer Price     $1.00 ($0 / SF) Estimated Cost to bring site to buildable condition and to account for regional stormwater pond upgrades ($640,130), exceeds asking price.
Earnest Money      $1 Non-refundable upon Notice to Proceed being provided by Developer.
Inspection Period     180 days from Effective Date (Date City Council approves)
Closing     Within 30 days of Notice to Proceed.
Commission This was a City generated lead. No Broker Commission to be paid
Extensions to Close     Developer will deposit $1 in escrow for each 60-day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.
City take care of     Preparation of City Closing documents. Staff will work with Title Company to complete.
Performance     City to require Buyer to construct a minimum 13,500 SF Warehouse building with City Zoning requirements and obtain a Certificate of Occupancy 12 months after Closing. If this is not done, the City may exercise remedies in the Right of Re-Entry Agreement. An additional 36,000 SF building addition will be constructed at a later date and will not be included in the Right of Re-Entry Agreement. Buyer must obtain all required MPCA approvals and easements. Buyer will need to Combine and Plat Property (27-32-25-41-0025) with adjacent property to west (27-32-25-41-0017) prior to construction of 36,000 SF Addition.
Assignment     Requires city approval if not same owners / company.
Contingencies     None

Review     EDA (Sean): Land Transaction/ Purchase Agreement/ Right of Re-Entry
Planning Commission (TBD): Land Use, Development Agreement, Site Plan
City Council: Final Approval on all items

1) EDA recommendation to City Council to approve Term Sheet, Purchase Agreement and Right of Re-Entry Agreement (as presented); subject to City Attorney review

2) EDA recommendation to City Council to approve Term Sheet, Purchase Agreement and Right of Re-Entry Agreement (with changes); subject to City Attorney review

3) Something else

N/A

Staff recommends and EDA recommendation to City Council to approve Term Sheet, Purchase Agreement and Right of Re-Entry Agreement (as presented); subject to City Attorney review

Motion for EDA recommendation to City Council to approve Term Sheet, Purchase Agreement and Right of Re-Entry Agreement (as presented); subject to City Attorney review