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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />8.4 <br /> <br />Meeting Date <br />June 3, 2024 <br />Prepared By <br />Brent O'Neil, Economic Development Director <br /> <br />Item Description <br />Resolution 24-31: Sale of Property in Nature's Edge <br />Business Park to PLM Properties, LLC <br />Reviewed by <br />Brent O'Neil <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Adopt, by motion, Resolution 24-31 authorizing the execution of a purchase agreement for the sale of city- <br />owned land to PLM Properties, LLC, an affiliate of Heritage Millwork. <br /> <br />Background/Discussion <br />To support the Heritage Millwork project, this item authorizes the sale of 14.06 acres of city-owned property <br />to PLM Properties, LLC, which would own and construct the facility for lease to Heritage Millwork. The <br />property is a portion of the property the city recently acquired in the Nature's Edge Business Park <br />development. The proposed value has been negotiated at $1,378,020.60, or $2.25 per square foot, which is in <br />line with the estimated fair market value and pricing established by the city. The purchase agreement <br />authorizes a due diligence period of 45 days and closing to occur by September 30, 2024. It is anticipated the <br />buyer will close on the property as soon as feasible and commence the project immediately thereafter. <br /> <br />The buyer has requested the property be transacted for $1 with the city receiving compensation for the full <br />value of the property through receipt of funds through TIF District No. 29. This is contingent on the <br />execution of a Purchase Price Note between PLM Properties, Heritage Millwork, and the city which will be <br />taken to the Council for consideration before the expiration of the due diligence period. This note will <br />contain necessary provisions to ensure the TIF payments are received by the city and guaranteed by the <br />buyer. The sale also includes a reverter clause, which requires the fulfillment of the project or the property <br />reverts to the city. <br /> <br />Upon replat and sale of this property, approximately seven acres will remain available and be marketed for <br />development. <br /> <br />Financial Impact <br />This agreement authorizes the sale of property for $1, with the city to be compensated for the full remaining <br />value of $1,378,019.60 through TIF District No. 29. <br /> <br />Mission/Policy/Goal <br />Support commercial and industrial development. <br />Page 435 of 464