Resolution No. 22-01 EDA - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: June 13, 2022 TOPIC: Public Hearing. Consideration of Resolution No. 22-01, Approving Purchase and Sale Agreement with Silver Creek Equity, LLC 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. The EDA has previously sold land to Lino Lakes Assisted living in 2013 and 11 acres to DR Horton—Minnesota in 2015. Silver Creek Equity, LLC, has made an offer to purchase approximately 6.27 acres of the land consisting of five parcels. The property lies northwest of city hall and is bounded by Town Center Parkway and Village Drive. For consideration is a purchase agreement whereby Silver Creek Equity will purchase the property for $2,376,154.00. The developer is proposing to construct a market rate age targeted multi-family rental building, two restaurants, and a multi- tenant retail building. 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$50,000. $10,000 is due at time of closing and the remaining deposit of $40,000 due at completion of the Due Diligence Period. 2. Purchaser has a 120 day"Due Diligence Period"to perform inspections and engineering to determine suitability. 3. Purchaser has 9 months to work through "Entitlements". Purchase of property is subject to obtaining all final government approvals. 4. Minimum Improvements required include the Housing Building, Retail Building and two Restaurant Buildings. 5. Provides for construction, by Purchaser, of two "Monument" signs at locations approved by City. Advertising space for City facilities at no cost (city responsible for its sign facing costs). Location of signage to be determined by City. 6. Contract requires commencement of site construction within one year of the closing or City has right to repurchase property. Construction on a restaurant or retail building must commence prior to or concurrently with the Housing Building.