Resolution No. 15-04 EDA - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3 STAFF ORIGINATOR: MEETING DATE: Michael Grochala December 28, 2015 TOPIC: Public Hearing. Consideration of Resolution No. 15-04, Approving Purchase and Sale Agreement with D.R. Horton, Inc. -Minnesota VOTE REQUIRED: Simple Majority. BACKGROUND In 2010 approximately 20 acres of undeveloped land within the Legacy at Woods Edge development was tax forfeited to the State of Minnesota. In September of 2013 the Economic Development Authority (EDA) obtained, at no cost, the tax forfeit property from the State of Minnesota. The transfer was made to the EDA with the intent that 1) EDA ownership would facilitate development of the site; and 2) that sale proceeds would be applied to the retirement of existing debt service for public improvements associated with the site development. D.R. Horton Inc. has made an offer to purchase approximately 11 acres of the land consisting of two parcels. The property lies north of the existing YMCA property. For consideration is a purchase agreement whereby D.R. Horton will purchase the property for $1,000,000. The developer is proposing to construct single family townhomes. The proposed use is generally consistent with the original development master plan. The agreement is subject to a number of conditions. 1. The purchaser will provide earnest money in the amount of $25,000. 2. Purchaser has a 60 day "Inspection Period" to perform inspections and engineering to determine suitability. 3. Purchaser has 270 days to work through "Government Approvals". Purchase of property is subject to obtaining all final government approvals. The property lies within Tax Increment Financing district 1-11. While no financial incentives are being provided to the purchaser, tax increment generated by the development will be available to meet existing improvement debt obligations. Staff has worked with Springsted Inc., the EDA's financial consultant, to evaluate the proposed purchase. Staff has determined that the land sale proceeds, coupled with the increased tax increment generated by the development, would generate revenues over the life of the district sufficient to cover remaining debt service. RECOMMENDATION 1. Staff recommends Approval of Resolution 15-04 Approving a Purchase and Sale Agreement between the Lino Lakes Economic Development Authority and D.R. Horton, Inc. -Minnesota.