06/02/2022 EDAC Packet - Laserfiche WebLink

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Purchase Price The proposed purchase price of $2,376,154.00 ($8.70 SF) is $3.33 SF higher than Anoka County's 2022 assessed value of $1,468,000 ($5.37 SF). The sale price is higher than most comparable sales in the area and local listings. Term c Minimum Improvements: Project must include, market rate age -targeted senior building of approximately 132 - 150 units, two restaurants, and multi -tenant retail building. Timeline: Purchaser must begin construction within one year of purchase. One restaurant or multi -tenant building must be started before or concurrent with the multi -family building. Project must be completed within 2 years. Closing Date: Staff is working on this with the development team. Tentatively, 9 months from date the agreement is executed or 60 days after final project approval, whichever is less. Reverter: EDA retains the right to repurchase property at the original sale price if the minimum improvements are not started or completed within the allowed timeline. Project Identify Signs: Purchaser is agreeable to construction of Project Identity signs at up to two locations as determined by the EDA (consistent with the PUD Regulating Plan. EDA would reserve space for City facilities on sign(s). Details are still being worked out.) Earnest Money: Staff is proposing earnest payment in the amount of $50,000. This is approximately 2% of purchase price. Process The sale of land by the EDA requires a public hearing. The public hearing is scheduled for June 13, 2022. A public notice for the hearing is set for publication in the Quad Press for Tuesday, May 31, 2022. Following the hearing, the EDA would take action to approve the sale and authorize execution of the purchase agreement. Once the purchase agreement is executed, the purchaser's due diligence period begins and the timeline for closing would start. Financial Impacts The City received the land at no cost through special legislation to allow the City opportunity to recoup outstanding special assessment debt through land sale proceeds. The public improvement debt service was paid off in 2021 and tax increment proceeds have been used to reimburse the City for interfund loans for prior debt service installments. To date, approximately $2,470,000 remains for repayment on the interfund loans. Staff is expecting this to be paid off by existing tax increment proceeds in 2027. An additional $545,000 remains in debt service for the Lake Drive interchange. This payment is currently covered by dedicated state aid funds and tax increment and will be paid off in 2024. Any land sale proceeds would reduce the time line for repayment. 2