02-26-2018 EDA Packet - Laserfiche WebLink

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Commercial prices can range significantly based on both location and use. Aldi acquired the property in front of the Blaine Fleet Farm in 2015. County records show the 2.23 acre property was purchased for $9.28 square foot. The most recent comparable Lino Lakes acquisition would be the Eagle Liquor location in the Marketplace Development. That property sold in 2016 for $8.50 square foot. Development Alternatives. While the grocery use would be an excellent addition to the development and city at large, the design requirements necessary to integrate the building into the site may not be acceptable to the tenant. Building reuse is also a consideration. The grocer tenant is likely to sign a 10-15 year lease with a 5 year guarantee. Additionally, the sale of only 2 acres increases the potential difficulty in marketing the balance of the property. The buyer has requested non-compete requirements on the balance of the property. Staff has indicated the City’s preference to sell the entire 6 acre parcel. The Developer has indicated there willingness to act as a Master Developer for the site. However, they want the ability for the grocery project to proceed independently of the remainder of property LOI Comments Staff reviewed the draft LOI with Kennedy and Graven, the City’s Development Counsel. An number of comments were submitted to the developer including the following: 1. Earnest Money: Developer proposed $10,000. Staff is recommending an adjustment to 5% of purchase price. 2. Title/Survey: Buyer to pay for title commitment and ALTA 3. Declaration: Change to “Master Development Agreement and Declaration” Add the following changes: The parties shall negotiation work cooperatively to negotiate a Master Development Agreement and a Declaration of Easements, Covenants, Conditions, and Restrictions during the Inspection Period which shall be recorded at Closing. The Declaration shall provide, among other things, reciprocal use of drive-lanes and parking (except for the “critical parking area” depicted on Exhibit A), joint stormwater facilities and maintenance obligations with respect to common areas. The Declaration shall also impose Seller will also consider imposing restrictions on the lots south of the Property for total building square footage not to exceed 10,000 square feet with no building in the south area exceeding 6,000 square feet as set forth on Exhibit A. There shall also be The Seller will also consider restrictions in the Urban Block that give the grocer an exclusive use. 4. Access: Seller and Buyer will enter into a Right of Entry Agreement providing Buyer’s contractors reasonable access to the property. 5. Seller’s Title: City will provide Quit Claim Deed 6. Purchase Agreement: Add the following: Both parties acknowledge that the EDA Board must hold a public hearing and approve the land sale.