6.2 EDSR 03-16-2015
Request for Action
ToItem Numbe
r
Economic Development Authority 6.2
Agenda SectionMeeting DatePrepared by
General BusinessMarch 16, 2015Jeremy Barnhart, Deputy Director, CODD
Item DescriptionReviewed by
Sale of Lots 1 and 2, Block 1, Natures Edge Cal Portner, City Administrator
Reviewed by
Business Center II
Action Requested
Respond to Purchase Agreement received for Lots 1 and 2, Block 1, Natures Edge Business Center II
(NEBC II). (GATR)
Background/Discussion
The city has received a Purchase Agreement to purchase Lots 1 and 2, Block 1, NEBC II from GATR of
Sauk Rapids.
The purchase agreement proposes the purchase of the two lots at the asking price of $2.25 per square
foot. GATR will provide 10 percent in earnest funds.
GATR proposes closing by June 5, 2015, though this date may change through mutual agreement. The
contingency date is April 30, 2015. Contingencies include: environmental testing, land use approvals
(rezoning, lot combination, easement vacation, site plan approval, tax abatement), and clean title.
Analysis
The agreement proposes the sale at market value, paid at closing. The contingency date proposed will
need to be extended to May 19 at minimum to accommodate city review timelines.
It is not yet clear what tax abatement they are requesting, or for what purpose. The CityÔs Business
Subsidy policy does not allow for the use of tax abatement for service or retail businesses. The policy will
need to be amended and presented to DEED for approval.
Financial Impact
N/A
Attachments
Purchase agreement (to be distributed at the closed meeting)