7.1. EDSR 02-20-2024
Request for Action
To Item Number
Economic Development Authority 7.1
Agenda Section Meeting Date Prepared by
General Business February 20, 2024 Brent O’Neil, Economic Development Director
Item Description Reviewed by
10835 170th Ave NW Cal Portner, City Administrator
Reviewed by
Action Requested
th
Approve, by motion, an amendment to the purchase agreement selling land at 10835 170 Ave NW.
Background/Discussion
th
The EDA agreed to sell property at 10835 170 Ave NW to Thunderstruck Exteriors for the construction of an
approximately 9,000 ft. building to house Thunderstrucks’s operations. Following preliminary engineering work
and discussions with the neighboring property owners, the original concept for laying out the building and
providing access to the property from the west will not work as first planned. Shifting the access point to the east
of the property and corresponding redesign work of the site will add in excess of $20,000 to the project costs. The
buyer has requested a change in price for the property due to these factors.
Upon previous consultation with the EDA and multiple conversations with the buyer, it is recommended the sale
price be reduced from $210,000 to $200,000, which is reflected in the proposed amendment. The proposed price
also matches the present list price on the property.
Financial Impact
This change in price will lower net proceeds from the sale by approximately $10,000.
Mission/Policy/Goal
Attract new business development to Elk River to build the City’s economic vibrancy, job offerings and tax base.
Attachments
Amendment One to Purchase Agreement
Site Exhibit
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
FIRST AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT
This First Amendment to Real Estate Purchase Agreement (this “First Amendment”) is made
this ____ day of February, 2024 by and between the Economic Development Authority for the City
of Elk River, Minnesota, a Minnesota body corporate and politic (the “Seller”) and Thunderstruck
Exteriors, Inc., a Minnesota business corporation (the “Purchaser”).
WHEREAS, the Sellers and the Buyer entered into that certain Real Estate Purchase
Agreement dated May 19, 2023 (the “Agreement”) providing for the conveyance by the Seller to the
Purchaser of certain property located in the City of Elk River, Sherburne County, Minnesota and
legally described as follows:
Lot 1, Block 1, Natures Edge Business Center, according to the recorded plat thereof,
County of Sherburne, State of Minnesota.
Parcel ID 75-00820-0105
(the “Property”); and
WHEREAS, due to unanticipated delays, the parties have determined to further extend the
Closing Date set forth in the Agreement to February 23, 2024 or such other date on which the Seller
and Purchaser may agree; and
WHEREAS, due to a change in plans for access to the Property, the Seller has agreed to
reduce the purchase price of the Property by $10,000; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Amendment to Paragraph 10 of the Agreement. The first paragraph of Paragraph 10
of the Agreement is amended to read as follows:
EL185\\73\\930372.v1
10. Closing/Payment of Closing Costs. The closing shall be on February 23, 2024
(“Closing”) or such other date on which Seller and Purchaser may agree. Such date or such other date
as this transaction actually closes as determined in accordance with the provisions of this Agreement
herein is called the “Closing Date.” The Closing shall take place at the office of the Title Company
in escrow, or at such other place that is mutually acceptable to the parties.
The remainder of paragraph 10 shall remain unchanged.
2. Purchase Price. Paragraph 2 of the Agreement is amended to read as follows:
2. Purchase Price. Purchaser agrees to pay to Seller as the purchase price for the Real
Property: Two Hundred Thousand and No/Hundreths Dollars ($200,000.00)(the “Purchase Price”).
The Purchase Price shall be payable as follows:
a. Within five business days after the execution and delivery of this Agreement,
Purchaser shall deposit with the Title Company (as herein defined): Twenty-One Thousand
and No/Hundreths Dollars ($21,000.00)(the “Earnest Money”). Title Company shall hold the
Earnest Money in escrow and shall disburse the Earnest Money according to the terms of this
Agreement. The Earnest Money shall be disbursed to Seller against the Purchase Price at
Closing as defined herein, or to the party entitled thereto as otherwise provided in this
Agreement.
b. The balance of the Purchase Price shall be payable at Closing by certified
check or wire transfer of immediately available funds through the Title Company to a bank
account designated by Seller.
3. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain
in full force and effect.
(Remainder of this page intentionally left blank.)
EL185\\73\\930372.v1
IN WITNESS WHEREOF, the parties have executed this First Amendment to Real Estate Purchase
Agreement as of the date written above.
SELLER:
THE ECONOMIC DEVELOPMENT
AUTHORITY FOR THE CITY OF ELK
RIVER, MINNESOTA
By: ________________________________
Its: President
By: ______________________________
Brent O’Neil
Its: Executive Director
EL185\\73\\930372.v1
PURCHASER:
THUNDERSTRUCK EXTERIORS,
INC.
By: _________________________________
Its:_________________________________
EL185\\73\\930372.v1
ri -
W
CM
O
j0---�2
o
c
o C-
u
m OD
E
:3 (D
E
E O u a
L 2
G .H
G N
L!i
N
c
A4 LC
<O any
LO
E
LO O p
O p
0 C
L O
r O O 0
r C) c
c�
04
Y
Q
O O
J
a
T
C
J
� � O
U
N
N
O
LO CD
�NCV
Q
C N
N
- 0-
N
Cn
(5LL(n
d
N
O
N
C
L
LL