8.1 SR 11-06-2023�,
Elk s �-
River
Request for Action
To Item Number
Ma Tor and CinT Council 8.1
Agenda Section Meeting Date Prepared by
GeneYal Business NovembeY 6, 2023 Brent O'Neil, Economic Develo ment DirectoY
Item Description Reviewed by
Resolution Transferring PYopeYtyr at 10835 170th Cal PortneY, Ci r Administrator
Avenue NW to the Economic Development Reviewed by
Authority (EDA)
Action Requested
Approve, byT motion, the attached resolution authorizing the execution of a deed transferring propertyT to the
EDA.
Background/Discussion
Dating back to the Focused AYea Study (FAS"I� framewoYk in southeast Elk RiveY, the cityr and EDA agreed to
market the land at 10835 170`i� Ave NW foY economic development purposes with the EDA in a leading role. The
EDA has identified a buyTer in David Nelson of Thunderstruck Exteriors and the EDr� entered into a purchase
agreement for the propertyT earlier this yTear. The buyTer operates a construction business and is proposing a facilityT
of 9,000 sf. to house the construction operations. The project has Yecently been reviewed foY planning-related
permissions, which were recentlyT approved byT the CityT Council.
The sale to Thunderstruck is scheduled to close November 9. The sale price agreed upon is $210,000, which is in
line with a 2021 maYket analysis. All Yecords indicate the pYopertyr has remained in title to the cityr while it has been
marketed by the EDA. In order to complete the transaction, the propertyT ownership would need to be transferred
to the EDA. It is expected the title company will initiate a simultaneous closing from the cityT to the EDA, and the
EDA to Thunderstruck Exteriors.
Financial Impact
The net pYoceeds foY this transaction aYe expected to be appYoxirnately $180,000 to $190,000 afteY brokerage, legal,
and other fees.
Mission/Policy/Goal
Goal: Commercial Development
Attachments
■ Resolution Authorizing Propert�T Transfer
The Elk River Vision
A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional
se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty.
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Update�l• January 2023
City of
Elk -�-�
RiVer
City of Elk River
City Council
Resolution 23-
A Resolution of the City Council of the City of Elk River Authorizing the
Conveyance of Property Owned by the City of Elk River to the Economic
Development Authority for the City of Elk River, Minnesota
WHEREAS, the CityT of Elk River, Minnesota, (the "Cit�T") is the fee o�vner of certain real
pYopert�r located at 10835 170th Avenue NW (PID No. 75-820-0105), legally described as:
Lot 1, Block 1, Natures Edge Business CenteY, accoYding to the Yecorded plat theYeof,
Count�T of Sherburne, State of Minnesota (the "Propert�T"); and
WHEREAS, theYe is no futuYe use of the PYopeYtyr contemplated by the City; and
WHEREAS, Thunderstruck Exteriors, Inc., a i��innesota business corporation (the
"Developer"), pYoposed that it would like to purchase and develop the PropeYtyr, and on
May 19, 2023, enteYed into a purchase agYeement with the Economic Development
Authorityr for the City of Elk RiveY, Minnesota (the "EDA") foY the puYchase and
development of the PropertyT; and
WHEREAS, the Cit�T desires to work with the EDA to facilitate the conveyance of the
PropertyT to the Developer; and
WHEREAS, the City is authorized to convey real propertyr to the EDA pursuant to
Minnesota Statutes, Sections 465.035 and 471.64; and
WHEREAS, the City- and the EDA have followed applicable statutor�r provisions,
including but not limited to, iVlinnesota Statutes, Section 465.035, iVlinnesota Statutes,
Section 469.101 and Minnesota Statutes, Section 471.64, in authorizing the conveyance of
the Property; and
WHEREAS, the City has determined it is most cost effective to convey the Property to
the EDA by this Resolution and a standard quit claim deed; and
WHEREAS, the Property shall be subsequentlyT conveyTed byT the EDA to the Developer
pursuant to Nlinnesota Statutes, Section 469.105 for development purposes; and
WHEREAS, the CityT finds and determines that conveyTance of the Propert�T as
contemplated herein to the EDA is for a public purpose and is in the public interest.
PawEREO ar
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EL 185-73-913102.v 1
NOW, THEREFORE, BE IT RESOLVED b�T the CityT Council of the CityT of Elk
River, i�linnesota, as follo�vs:
1.01. The CityT Council hereby authorizes the conveyance of the PropertyT to the EDA.
The proceeds of the conve�Tance of the PropertyT b�T the EDA to the developer shall be
transferred by the EDA to the City, less anyT costs incurred byT the EDA in the transaction.
1.02. That the Mayor and the Cityr C1eYk, and other Cityr staff as necessaryr aYe heYeby
authorized to execute the quit claim deed and any documents and certificates deemed
necessaryr to caYryr out the intentions of this resolution.
1.03. This Yesolution shall be effective as of the date heYeof.
Passed and adopted this 6`�' dayr of NovembeY 2023.
John J. Dietz, Mayror
ATTEST:
Tina Allard, CityT Clerk
vnwEREO er
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EL 185-73-913102.v 1