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EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.3 <br /> Agenda Section Meeting Date Prepared by <br /> Consent November 2, 2015 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Purchase Agreement between E&R Investments, Cal Portner, City Administrator <br /> LLC and the City of Elk River Reviewed by <br /> Action Requested <br /> Approve,by motion, a purchase agreement between the City of Elk River and E&R Investments,LLC <br /> for the purchase of real property located at the intersections of Highway 10,Joplin Ave, and Business <br /> Center Drive. <br /> Background/Discussion <br /> Staff has worked with a developer on a complex land assembly project that includes four parcels. The <br /> city owns two parcels while Sherburne County and the heirs of Hogan A. Wingness and heirs of Harry <br /> and Sue Lakoduk own the others. <br /> The developer proposes up to three commercial/retail buildings on the site for a national client with a <br /> drive thru, a regional client, and an opportunity for local business development in a multi-tenant building. <br /> The Council approved the Letter of Intent to purchase real property and authorized a property appraisal <br /> on June 15, 2015. The purchase agreement reflects the appraised-value purchase price and the seller's <br /> acquisition costs,including,but not limited to, appraisal fees, court filing fees, and attorneys' fees. <br /> Purchase agreement between the city of Elk River and E&R Investments,LLC <br /> Purchase Price: $81,000 <br /> Earnest Money: $1,000 <br /> Escrow: $10,000 <br /> Upon execution of the purchase agreement, the developer will deposit$10,000 into an escrow account <br /> for reimbursement of the city's acquisition costs. Any remaining funds will be returned without interest. <br /> The developer is required to deposit additional escrow if the acquisition costs exceed $10,000. <br /> Financial Impact <br /> None <br /> Attachments <br /> ■ Appraisal dated 7/21/2015 prepared by Nagell Appraisal& Consulting,Inc. <br /> ■ City Council Staff Report dated June 15, 2015 <br /> ■ Parcel Exhibit <br /> ■ Draft Survey <br /> ■ Purchase Agreement between the city of Elk River and E&R Investments,LLC <br /> POWERED 6T <br /> Template Updoted 4/14 INAWRE1 <br />