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Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Economic Development Authority 6.1 <br />Agenda Section Meeting Date Prepared by <br />Public Hearings August 15, 2022 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />Sale of Property at 17610 Tyler Street NW Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Open the public hearing for public comments. Following the public hearing, approve, by motion, the resolution <br />authorizing the execution of a purchase agreement for sale of property at 17610 Tyler Street NW. <br /> <br />Background/Discussion <br />The EDA has received an offer to purchase property at 17610 Tyler Street NW from Onyx Strategic Partners, <br />LLC. Staff and legal counsel have negotiated a purchase agreement with the buyer. The sales price is $900,000, <br />which is in line with prevailing market conditions for the approximately 12-acre site. <br /> <br />The buyer is proposing to build a multi-tenant building on the site targeted to small manufacturing businesses and <br />compatible uses. Their plans indicate the likely possibility of a second building on the site as well. <br /> <br />At the buyer’s request, the agreement includes a 150-day due diligence period to further evaluate the site and <br />finalize their development program. The buyer indicated they may request property tax abatement as their <br />program is fully planned out, of which any application and consideration of, would occur within the due diligence <br />period. Under EDA statute the property must be substantially developed within one year of the buyer acquiring <br />the property or the property reverts back to the EDA. This provision is reiterated in the agreement as is a <br />requirement that the project be fully completed within two years. <br /> <br />Financial Impact <br />The sale of this property will net approximately $850,000 for the EDA, net of closing expenses and broker fees. <br /> <br />Mission/Policy/Goal <br />Attract new business development to Elk River to build the City’s economic vibrancy, job offerings and tax base. <br /> <br />Attachments <br /> Resolution Authorizing Sale <br /> Purchase Agreement <br /> Draft Site Concept Plan <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />