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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