7.5. EDSR 07-20-2020 - Laserfiche WebLink

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��i City of Elk , Request for Action River To Item Number Economic Development Authori 7.5 Agenda Section Meeting Date Prepared by General BusinessJuly 20, 2020 Amanda Othoudt,ED Director Item Description Reviewed by Sale of 17565 Tyler Street NW, Northstar Business Cal Portner, City Administrator Park Reviewed by Action Requested Respond to Purchase Agreement received for 17565 Tyler Street NW,Northstar Business Park. Background/Discussion The EDA has received a Purchase Agreement to purchase 17565 Tyler Street,NW from Shoot Steel, Inc. of Ramsey,MN. The purchase agreement proposes the purchase of a 4.34-acre lot at the asking price of$2.00 per square foot for a total of$378,100. Shoot Steel will provide $20,000 earnest funds and will be credited against the purchase price. They will have 120 days to conduct their due diligence and may extend this period for an additional sixty (60) days by depositing an additional$5,000 as nonrefundable earnest money. Shoot Steel proposes to close on the property within 30 days after satisfaction of all conditions outlined in the Purchase Agreement,though this date may change through mutual agreement. The buyer's contingency date is November 20, 2020. Contingencies include suitable financing, environmental testing,land use approvals site plan approval, and clean tide. The buyer intends to apply for incentives through the EDA,however,it is not yet clear on what type of city financing they are requesting, or for what purpose. The purchase agreement is also contingent on the EDA holding a public hearing and making the requisite findings required by Minnesota Statutes Section 469.105, subdivision 2 that the sale and conveyance of the property to the buyer are in the best interests of the city and the transaction furthers the EDA's general plan of economic development. Shoot Steel has requested that the EDA pay the brokerage fees of 3% of the purchase price, or$11,343. This amount does not trigger a Business Subsidy. Analysis The agreement proposes the sale at market value,paid at closing. The contingency date proposed will meet standard city review timelines. Financial Impact $378,100 will be deposited into the city development fund account The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional p D W E H E D D Y service, and community engagement that encourages and inspires prosperity ,g /` UR