5. EDSR 06-17-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River To ITEM NUMBER Economic Development Authority 5. AGENDA SECTION MEETING DATE PREPARED BY June 17, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Request by Pat Briggs to purchase City-owned property on Jeremy Barnhart, Deputy Director, behalf of Professional Service Bureau, Inc. Community Operations and Development REVIEWED BY Brian Beeman, Director of Economic Development ACTION REQUESTED Hear testimony from Pat Briggs representing PSB (Professional Service Bureau, Inc.) on the details of the proposed purchase agreement between PSB and the City; for the sale of City owned 3 acres parcel Al of Northstar Business Park to PSB in the amount of$196,000. BACKGROUND/DISCUSSION Consensus of the EDA at the May 13, 2013 meeting was that they are not interested in selling the property for$1 and for staff to work with the current tenants,PSB, to find a solution or to potentially acquire the building. Currently, PSB leases their building from PB-Sunset, the owner of the building at 11110 Industrial Cir NW and is running out of room for parking, due to their rapidly growing business. PSB has offered to purchase the building from PB-Sunset contingent upon a Small Business loan through the Bank of Elk River.To address the parking issue,PSB proposes to purchase three acres of Parcel A, the recently created parcel of Lot 1,Block 1,Northstar Business Park intended to facilitate the expansion of adjacent businesses. PSB has come forward with a proposal to purchase three acres at$1.50 per square foot ($196,000 / 130,680 sq ft). For the purchase to be consummated and improvement to be completed, several steps are necessary: Confirm the market value of the land Public hearing for the sale of the land Approve a resolution approving the purchase agreement A three acre lot will need to be created (survey required) The three acre parcel will need to be incorporated into the PSB lot Site plan approval will need to be granted for the parking lot expansion (civil engineering required)