4.2. & 4.3. SR 11-08-1999
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Item #4.2. & 4.3.
River
MEMORANDUM
TO:
Mayor & City Council
FROM:
Paul T. Steinman, Director of Economic
Development
DATE:
November 8,1999
SUBJECT: Agenda Items 4.2 & 4.3.
4.2. Economic Development Stratel!ic Plan
Attached is a copy of the 2000-2003 modified Economic Development
Strategic Plan.
Recommendation
.
Staff recommends the City Council approve the 2000-2003 modified
Economic Development Strategic Plan.
4.3.
Holt/Jackson Site - Purchase Al!reement
Issue
A purchase agreement for this site was presented to the City Council at
the October 25, 1999, meeting. The proposed use of the site is to
construct an office building. The purchase agreement is for the amount
of $350,000.
.
The city attorney's office has reviewed the purchase agreement and
provided a number of recommendations prior to approval by the City
Council. Attached to this memo is a handwritten copy of the
recommended changes to the purchase agreement and addendum. Time
did not allow for the purchase agreement to be revised to final form for
the council packet. Staff is assuming that the buyer will be able to
make the recommended changes and provide a final purchase
agreement to the council at this November 8, 1999, meeting.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
.
Recommendation
Staff recommends the council approve and authorize execution of the
purchase agreement for the sale of the land at Holt and Jackson Streets,
with the modifications recommended by the city attorney's office as
attached to this memo.
.
.
.
.
ITEM 4.2.
City of Elk River
2000- 2003
Economic Development
Strategic Plan
Adopted May, 1997
Revised November 1999
.
Elk River
"A historic river community serving as a
regional center with a favorable location
near the Twin Cities metropolitan area"
Our mission is to actively participate in economic
. development by utilizing available resources to
leverage viable and healthy investments in our
community. Such investments will create diverse job
opportunities as a result of a stable and growing
business and industrial base. We will strive to provide
quality services, maintain a favorable tax rate, supply
full-cycle housing options for our residents, and foster
an environment that will result in substantial growth of
our local economy.
.
Modification Committee
.
City Council
Economic Development Authority
Housing and Redevelopment Authority
Facilitator: Jim Brimeyer, The Brimeyer Group
.
.
Major Issues and Goals
:tit Industrial Base
. Attract new businesses to increase the city's
industrial base
:tit Business Retention and Growth
. . Retain and grow the city's existing
business/industry
:tit Marketing Strategy
. Create an industrial marketing strategy to
develop the city's business parks.
:tit Develop/Redevelop E. H wy 10 & the
CBD
. Undertake activities that facilitate
development/redevelopment on East Highway
10 and in the Central Business District.
.
I. Grow Industrial Base
Goal: Develop West Business Park
.
aintain current joint development agreement with Tony
Emmerich.
. Consider a joint development agreement with Gagne and
Wilson.
. Develop well focused target marketing tactics:
. Market to brokers and others with connections to industry, such
as MN Technology.
. Target an industry cluster, such as the energy industry (Energy
City).
. Work with local industries to market Elk River to their suppliers
and customers.
. EDA to research construction of a spec building and locate a
tenant.
. Establish bank partnerships
. Establish developer partnership
. Identify funding sources (i.e. franchise fee revenue)
. Consider completing construction of Business Center Drive.
. Explore marketing methods employed by developers and
builders.
. Examine appeal of West Business Park to specific types of
industries. (Target marketing, Industry cluster)
. Develop specific marketing materials for West Business
Park.
. Maintain and build networks with banks, brokers, chamber,
existing businesses, media, and others.
.
.
I. Business Retention & Growth
Goal: Retain and grow existing industries
. Complete BRE Survey and distribute final results to council, EDA,
Industries and Chamber of Commerce.
. Consider publishing periodic (quarterly or bi-annual) newsletter
highlighting economic development activities, practices and issues.
. Create local industrial business publicity program - have quarterly
feature stories written on industrial firms.
. Utilize business round table approach to gauge business's attitude
. toward developing policies and projects.
. Distribute marketing materials to local industry and promote incentive
programs.
. Ads - Continue to feature local firms in City Business, Ventures, etc.. .
and explore local advertising opportunities.
. Utilize DTED's Manufacturer's Week to showcase existing firms.
. Create opportunities for interaction between business owners and
elected/appointed officials.
. Involve local industries in a major marketing event.
. Maintain database of industrial businesses.
. Consider continuing EDA Commitment to the Business Incubator
Project.
.
.
III. Marketing Strategy
Goal: Develop an industrial marketing strategy to
develop business parks.
.
. Establish a marketing plan committee comprised 5-7 of business
& civic leaders.
. Consider hiring a consultant to help facilitate the formation and
implementation of a marketing plan.
. Update and maintain marketing materials.
. Complete construction of economic development website.
. Utilize Energy City designation as a marketing tool.
.
.
.
IV. (Re)Development on
E. Hwy 10 & in the CBD
Goal: Undertake activities that facilitate
(re)development on E. Hwy 10 & in the CBD.
Hi2hwav 10
. Develop criteria for designating redevelopment areas.
. Identify redevelopment/development areas.
. Develop database of east Highway 10 properties.
. Consider locating additional sites for Elk River monument/entry
slgnage.
. Examine use of Redevelopment Financing Program along east
Highway 10.
Central Business District (Downtown)
. Develop criteria for designating redevelopment areas.
. Identify redevelopment areas.
. Consider hiring a consultant to design a redevelopment plan for
downtown.
. Develop design guidelines for redevelopment in the CBD.
. Issue Request For Proposals for redevelopment sites in CBD.
. Further explore the concept of facade grants in cooperation with
local banks.
. Continue work on CBD action plan.
. Construct database of downtown businesses
. Continue marketing King and Main site for redevelopment
Additional Action Steps
.
. Modify TIF policy to comply with changes in State law.
. Continue professional development of staff through
conferences, formal training programs, etc....
. Utilize GIS to manage data of industrial and commercial real
estate.
. Explore the development of a rail spur
. Inventory all available commerciallindustrialland and buildings.
. Utilize existing tools to encourage development: TIF, Micro
Loan, Tax Abatement, SCBDF, State, Initiative Foundation.
. Ensure Brown property remains available for industrial
development.
.
.
ITEM 4.3.
COMMERCIAL-INDUSTRIAL
PURCHASE AGREEMENT
This fonn approved by the Minnesota Association of
REAL TORS0>, which disclaims any liability arising out of
, use or misuse oftbis fonn.
Date: October 25.1999
RECEIVED OF Dennis D. Anderson And Dwight M. Denves
the sum of Five Thousand Dollars And 0/1 00
(check)
( $5000.00
) DOLLARS
property at Holt & Jackson
situated in the County of Elk River
as earnest money and in part payment for the purchase of
, State of Minnesota, and legally described as follows:
together with the following personal property:
all of which property the undersigned has this day sold to the Buyer for the sum of: Three Hundred FiftvThousand and no/I 00
($350.000 ) DOLLARS, which the Buyer agrees to pay in the
following manner:
Earnest money herein paid $ 5000.00 ,$345,000 cash, on, Deecmeer31 1999 ,Jo_r'tl.tIiLr(.l 3\, zoCO
:.the date of closing and the balance of $0 by financing as shown on the attached addendum.
1. DEEDIMARKETABLE TITLE: Subject to performance by the Buyer, the Seller agrees to execute and deliver a
Warranty Deed conveying marketable title to said premises subject only to the following exceptions:
(a) Building and zoning laws, ordinances, State and Federal regulations. (b) Restrictions relating to use or improvement of the
premises without effective forfeiture provision. (c) Reservation of any minerals or mineral rights to the State of Minnesota. (d)
Utility and drainage easements which do not interfere with present improvements. ~ Rights ofteftElflts 83 fallev;s:
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.. REAL ESTATE TAXES. Real estate taxes due and payable in 1I1e year of elosing shall be prorated between Seller and Buyer on a
calendar year basis to the actual date of closing unless otherwise provided in this Agreement. Real estate taxes payable in the years
prior to closing shall be paid by Seller. Real estate taxes payable in the years subsequent to closing shall be paid by Buyer.
3. SPECIAL ASSESSMENTS. SELLER SHALL PAY on the date of closing all installments of special assessments certified for
payment with the real estate taxes due and payable in the year of closing.
SEL L PROVIDE FOR PAYMENT OF special assessments pending as of the dat is Agreement for
improvements a en ordered by the City Council or other governmental assessin ties. (Seller's provision for
payment shall be by payment in w of 11/2 times the estimated amount of the ents.)
If a special assessment becomes pending a te of this Agr efore the date of closing, Buyer may, at Buyer's
option: (a) Assume payment of the pending special asses out adjustment to the purchase price; or (b) Require Seller to
pay the pending special assessment (or escr ayment of same a 0 11/2 times the projected pending assessment)
and Buyer shall pay a comm mcrease in the purchase price of the propertY: ' . crease shall be the same as the
estimated amount of ssment; or (c) Declare this Agreement null and void by notice to Seller, money shall be
Seller shall pay on date of closing any deferred real estate taxes or special assessments payment of which is required as a result of
the closing of this sale.
4. PRORATIONS. All items customarily prorated and adjusted in connection with the closing of the sale of the property herein
including but not limited to rents, operating expenses, interest on any debt assumed by Buyer, shall be prorated as of the date of
closing. It shall be assumed that the Buyer will own the property for the entire date of the closing.
S. DAMAGES TO REAL PROPERTY. If there is any loss or damage to the property between the date hereof and the date of
closing, for any reason, the risk of loss shall be on the Seller. If the property is destroyed or substantially damaged before the
closing, this Purchase Agreement shall become null and void, at Buyer's option. Buyer shall have the right to terminate this
Purchase Agreement within 30 days after Seller notifies Buyer of such damage. Upon said termination, the earnest money shall be
refunded to Buyer and Buyer and Seller agree to sign a cancellation of Purchase Agreement.
.
COMMERCIAL-INDUSTRIAL
PURCHASE AGREEMENT
Address Property at Holt & Jackson
October 25" 1999 Page 2
e. EXAMINATION OF TITI...E. Within a reasonable time after acceptance of this Agreement. Seller shall furnish Buyer with an
Abstract of Title or a Registered Property Abstract certified to date including proper searches covering bankruptcies and State and
Federal judgments, liens, and levied and pending special assessments. Buyer shall have 10 business days after receipt of the
Abstract of Title or Registered Property Abstract either to have Buyer's attorney examine the title and provide Seller with written
objections or, at Buyer's own expense, to make an application for a title insurance policy and notifY Seller of the application. Buyer
shall have 10 business days after receipt of the commitment for title insurance to provide Seller with a copy of the commitment and
written objections. Buyer shall be deemed to have waived any title objections not made within the applicable 10 day period set
forth above, except that this shall not operate as a waiver of Seller's covenant to deliver a Warranty Deed, unless a Warranty Deed
is not specified above. If any objection is so made, Seller shall have 10 business days from receipt of Buyer's written title
objections to notify Buyer of Seller's intention to make title marketable within 120 days from Seller's receipt of such written
objection. If notice is given, payments hereunder required shall be postponed pending correction of title, but upon correction of title
and within 10 days after written notice to Buyer the parties shall perform this Purchase Agreement according to its terms. If no
such notice is given or if notice is given but title is not corrected within the time provided for, this Purchase Agreement shall be
null and void, at option of Buyer; neither party shall be liable for damages hereunder to the other and earnest money shall be
refunded to Buyer; Buyer and Seller agree to sign cancellation of Purchase Agreement. If title to the property be found marketable
or be so made within said time, and Buyer shall default in any of the agreements and continue in default for a period of 10 days,
then and in that case the Seller may terminate this contract and on such termination all the payments made upon this contract shall
be retained by S~ller as liquidated da~ages, time be~g oft~e essence. 11li~ pre.isi88 ~a1l8~t a~ri.~.Gi~81p.MtJ 6fa~~ rigk:~t~te.
~~~ ~Q ~F""'fi" p~fm:mORt'~ QftbUl ~9RW. }JfEnailtl th.u ~&Abaet I...., &Aut bcen teI.fttl.'tfftettttM l'le"taeft fteti8B-4;e-~ ---l:l.
ilpeeiiie pe. [VUllC1lI\N 0>11..11 he 8eft1ftlefteed '::ithin sin ftlSntftll RiaT ouaR right &f l.",t:ml ~hlill fttliS8.
7. POSSESSION. Seller shall deliver possession of the property on the date of closing.
8. REPRESENTATIONS AND WARRANTIES. See attached addendum.
9. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT.
10. WELL DISCLOSURE STATEMENT. Buyer has received the well disclosure statement required by Minnesota Statutes Sec.
1031.235. BUYER AND SELLER INITIAL: Buyer(s) Seller(s)
1l.ADDENDA. Attached are (number) addenda which are made a part of this Agreement.
A2.MISCELLANEOUS PROVISIONS.
· (a) Survival. All of the warranties, representations, and covenants of this Agreement shall survive and be enforceable after the
closing.
(b) Entire Agreement; Modification. This Agreement constitutes the complete agreement between the parties and supercedes
any prior oral or written agreements between the parties regarding the property. There are no verbal agreements that change
this Agreement and no waiver of any of its terms will be effective unless in a writing executed by the parties.
(c) Successors and Assigns. If this Agreement is assigned, all provisions of this Agreement shall be binding on successors and
assigns.
13. ACCEPTANCE DEADLINE. This offer to purchase, unless accepted sooner, shall be null and void at 11 :59 P.M. . 1999
and in such event aU earnest money shall be refunded to Buyer.
NOTICE
Robert Carlson
Represents
Buver
(Agent)
Represents Seller
THIS IS A LEGALLY BINDING CONTRACT. IF NOT UNDERSTOOD, SEEK COMPETENT ADVICE.
Dated: October 25, 1999
BUYER , D. Anders... An~t M Den...
Signed ~ /J 1j1lf7k1.
. .
Dated: October 25,1999
SELLER
SELLER
.
.
.
ADDENDUM TO PURCHASE AGREEMENT
DATE: October 25.1999
By and between, Dennis D. Anderson & Dwight M.Denyes, and or its' assigns, Buyer
and City of Elk River, Seller.
1. TERMS AND CONDITIONS. The terms, conditions and proVISIOns of this
addendum shall tS21j~ ~edence over and control any contrary terms contained in the
purchase agreem nt.\+hever possible, the addendum shall be construed consistently
with the printed portion of the purchase agreement.
. PURCHASE PRICE. The purchase price shall be $350.000.00.
up the following terms:
I pay
ce will accrue at nual interest rate of 10%
ee all payments.
........~
'"
.J. EARNEST MONEY. $5,660.88 Eatl1@gt money. J (lnlAt1..(v 201)~O()O
Z;"^ CONTINGENCIES. Unless waived Buyer in writing, Buyers obligation to
purchase the property shall be s . ect to Buyer being able to satisfy the following
contingencies on or before '. The sufficiency of the
contingencies will be determined by Buyer, in Buyer's sole discretion. In the event
of the failur~ of any contingency, this Purchase Agreement shall ,be ~~ll and .vo~d at , 1"_1/(;11 t
Buyer's optlon and earnest money refunded~ Lipcn w' d1t'n 0ot~lLe, f-r C.'r) b~\f<~' -en :11<
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.~ TITLE-ztND EXAMINATION
re. e Abstract of titl ~_shalJ be.. allowed thirty (30) Gay" .,.fi."",.
be cerffi d "e, or Registered Property. Abstr..~~--~
, I Ie to a ro e _.......-..---~.., ~ LI1e case may
Federal judgment and. ~ o~er~g bankruptcies, State and
. . .' lor ute mg ect hi h
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.' ~ ~be
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assume any debt or outstanding liabilities. lIl@, . e BUYER shall not
i~r
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DWIGHT M. DENYES
0-520-157-585-861
1110 - 94TH LANE PH. 612-755-7467
COON RAPIDS, MN 55433
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:3500 - 129th Avenue N.W. Ph. 421-2044
Coon Rapids, Minnesota 55448
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5051
75-5632
910
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