4.13. SR 03-07-2016 - Laserfiche WebLink

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City of Elk - River Request for Action To Item Number Mayor and City Council 4.13 Agenda Section Meeting Date Prepared by Consent March 7, 2016 Amanda Othoudt, EDD Item Description Reviewed by Purchase Agreement between the City of Elk River Cal Portner, City Administrator and Sherburne County Reviewed by Action Requested Approve, by motion, a purchase agreement between the City of Elk River and Sherburne County for the purchase of .45 acres of property at the intersection of Joplin Street and Business Center Drive. Background/Discussion The City of Elk River has been working with a developer over the past few months in an attempt to assemble several parcels for a retail development project. The properties include two city -owned properties, a portion of MnDOT right-of-way, and a .45 acre piece of county -owned land located in the corner of Joplin Street and Business Center Drive. Once assembled, the developer has proposed up to three commercial/retail buildings on the site for a national client that supports a drive through, a regional client, and an opportunity for a local business development in a multi -tenant building. At their November 2, 2015, meeting, the City Council approved the sale of the city -owned property by E&R Investments, LLC as part of the first step in the multi -parcel assemblage. The next step is to purchase property from Sherburne County. The attached purchase agreement is for the purchase of the south 33 feet of old Highway 10 that lies between and under Business Center Drive and extends toward Joplin Street at market value for the usable acreage of the property. This .45 acre piece of county -owned land currently allows the access to the fairground billboard on the site. In order to make the project viable, the county fair billboard will need to be relocated elsewhere on the site. At the January 20"' Sherburne County Fair board meeting, the committee unanimously approved the relocation of the billboard onsite and is has indicated their support of the overall project. Financial Impact Earnest money in the amount of $1,000 will be delivered to the county upon execution of the purchase agreement and will also be paid out of the City Development Fund. The total purchase price of $18,365 minus the earnest money will be paid out of the same fund at closing. The developer has agreed to reimburse the city for the costs associated with assembling all the parcels for the retail development project. P a w E n E o A Y INIA UREJ