8.3. SR 03-16-2015
Request for Action
To Item Number
Mayor and City Council 8.3
Agenda Section Meeting Date Prepared by
General BusinessMarch 16, 2015Jeremy Barnhart, Deputy Director, CODD
Item Description Reviewed by
Sale of Lots 1 and 2, Block 1, Natures Edge Cal Portner, City Administrator
Business Center II (GATR)
Reviewed by
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 EDA is expected to provide a recommendation, after their meeting on March 16, 2015. This
recommendation will be provided verbally.
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 city’s 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 meeting)