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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 />Economic Development Authority <br />Item Number <br />3.1 <br /> <br />Meeting Date <br />November 4, 2024 <br />Prepared By <br />Brent O'Neil, Economic Development Director <br /> <br />Item Description <br />Resolution Amending Purchase Agreement of the <br />Fox Haven Site to Java Companies <br />Reviewed by <br />Cal Portner <br /> <br />Action Requested <br />Approve, by motion, a resolution amending terms of the purchase agreement at 13566 and 13530 185th <br />Street NW to Java Companies. <br /> <br />Background/Discussion <br />Java Companies expects to close on its purchase of the Fox Haven property in early November. The EDA is <br />being asked to address two items to facilitate the property transfer and project on the site. <br /> <br />First, Java is requesting to take possession through an affiliated company—Java Elk River Retail, LLC. This <br />request requires consent by the EDA and is in line with industry practice for property owners to separate <br />tracts of property under individual holding companies. <br /> <br />Second, the agreement contains a reversion clause in which the buyer is obligated to develop the property as <br />agreed upon, or the property title may revert to the EDA. The present terms state that "construction of the <br />footings and foundation for a...5,800 square foot gas station/convenience store must commence on the <br />property within one year" of closing. Kwik Trip has indicated the project is most likely to commence in early <br />Spring 2026 with an opening later that year. Java has requested a modification to this provision such that site <br />work, including clearing vegetation within one year, would satisfy the commencement requirement, and that <br />more flexibility be given by making 4,500 square feet the minimum facility size requirement. Additionally, to <br />ensure the project still moves forward as the EDA desires, the proposed modification to the reverter will also <br />require the project, as stated above, to be completed within two years of closing. <br /> <br />Financial Impact <br />For consideration of this modification and to offset EDA costs associated with this amendment, Java will <br />compensate the EDA $10,000 to be added to the purchase price. <br /> <br />Mission/Policy/Goal <br />Support commercial development. <br /> <br />Attachments <br />1. First Amendment to Purchase Agreement <br />Page 3 of 14