6.0 EDSR 03-10-2008 - Laserfiche WebLink

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Call Public Hearing for Sale of EDA Property March ]0, 2008 EDA Meeting Page 2 of 2 Proposed Sale of EDA Property The company has submitted a request to purchase the 9.29-acre Lot 4, Block 1 in the EDA- owned Northstar Business Park to accommodate the proposed expansion project. Staff has been working with Tom Bray of Briggs & Morgan to draft a purchase agreement for the sale of the EDA property. The company has requested, and staff recommends contingent upon Ehlers & Associates' review of the tax abatement application, that the lot be sold upfront for the purchase price of $1.00 and the EDA would received payment through city and county tax abatement revenues generated as a result of the project over an approximately 10-year period (based on a sale price of $809,345). The purchase agreement will include the statutory provisions for the sale of EDA property. MN Statutes requires the EDA to provide notice and hold a public hearing prior to the sale of property, review building plans and specs, and a reversion clause if the project is not completed as agreed. A copy of the purchase agreement as executed by the company is anticipated to be available for public review at the time the notice of public hearing is published (April 2°`~). Action Requested Staff is conducting the due diligence on the various financing applications in preparation for the EDA's review and consideration of the property sale, tax abatement, micro loan and DEED loan application at its April 14, 2008 regular meeting. In order to meet the company's desired spring construction schedule the EDA is asked to: Call a public hearing for Monday, April 14, 2008 at 5:30 p.m. regarding the proposed disposition of 9.29 acres of EDA property located at Lot 4, Block 1 Northstar Business Park for the Sportech, Inc. expansion project.