5. EDSR 05-13-2013 - Laserfiche WebLink

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selling the property primarily for a user that does not own its property is a more volatile situation than an owner occupied operation since the tenant has no financial commitment to the property. Second the EDA could decline the offer. With this option, the EDA does not lose out on potential revenue of the land and avoids the aforementioned precedent. However, this would likely lead to the exit of PSB from their existing location. Staff could work with PSB to find a new location in Elk River,but they will also consider other communities. In response to the original offer, staff declined it because of the large discrepancy between the offer and the appraised value. Not only would the EDA lose income potential for this lot,but it would also weaken negotiation positions in the future. Next, the EDA could direct staff to remove the restriction of high tech,industrial and manufacturing from the forgivable loan policy and encourage Mr. Briggs to apply and seek the remaining$107,000 of funds. Assuming his application was approved, this option would allow Mr. Briggs to purchase an acre of land from the city and construct a parking lot. The EDA Finance Committee expressed concern and rejected this idea at its March 29 meeting. Members of the committee stated that they thought that the EDA should target those industries, and a change would be premature since the program is only several months old. Finally,the EDA could direct staff to work with PSB to purchase the building from Mr. Briggs. The state may have some funding available through the Minnesota Investment Fund to help finance a purchase of the facility from Mr. Briggs. Mr. Briggs has expressed that he would like to retain possession of the building if possible,however he would be open to sell if it were his only option. Another potential challenge of this idea is that until the forgivable loan fund is expended, Elk River won't have access to state funding. FINANCIAL IMPACT Depends on option selected. ATTACHMENTS • Purchase Offer from the Briggs Companies • Email from PSB stating parking concerns Action Motion by Second by Vote Follow Up N:\Departments\Community Development\Economic Development EDA to move\Agenda\Year2013\5-13-2013\Request for Action Briggs Land Request(1).docx