Loading...
Special HRA Meeting Packet March 14, 2024 Housing and Redevelopment Authority Special Meeting Agenda Thursday, March 14, 2024 4:00 p.m. Elk River City Hall  Special meeting in Council Chambers 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CONSIDER AN AMENDMENT TO THE PURCHASE AGREEMENT BETWEEN THE HRA AND RON TOUCHETTE, DATED JUNE 21, 2023, FOR THE SALE OF PROPERTY AT MAIN ST. AND GATES AVE. 4. MOTION TO ADJOURN Meeting Protocol No sidebar discussions No interruptions State your concern Ensure you understand Don’t take things personally Adhere to time limits Come prepared Ensure all are heard Special Meeting Notice Housing and Redevelopment Authority (HRA) ver Thursday, March 14, 2024 4:00 p.m. Elk River City Hall 13065 Orono Parkway Elk River, Minnesota The purpose of the meeting is as follows: Consider an Amendment to the Purchase Agreement between the HRA and Ron Touchette, dated June 21, 2023, for the Sale of Property at Main St. and Gates Ave. I ; 11us ing and Reds, I nt Authority Chain Date I HEREBY CERTIFY, that this notice has been posted and that I have served this notice upon the members of the Housing and Redevelopment Authority by mail at least one day prior to the above - called special xr,ieeting. In accordance with State Statute, this notice will be posted at least three days prior tot ee g date. Tina Allard, City Clerk Date Pol[Ble rid NAWR 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 Request for Action To Housing and Redevelopment Authority Item Number 3.0 Agenda Section Action Item Meeting Date March 14, 2024 Prepared by Brent O’Neil, Economic Development Director Item Description Amend Main and Gates Property Purchase Agreement Reviewed by Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, Amendment One to the Purchase Agreement for the Sale of the Main and Gates Property. Background/Discussion The HRA approved an agreement to sell the property at Main and Gates for development to Ron Touchette of Rock Solid Companies during a public hearing at its June 20, 2023, meeting. The agreement was executed effective June 21, 2023. The agreement was based on the construction of a medical office building on the site, commencing in the summer of 2023. The primary tenant of the facility delayed its decision to execute a lease and the initial period for Mr. Touchette to close on the sale lapsed. Mr. Touchette has continued to work with the tenant and others and wishes to go forward with the project. The original agreement can be amended to extend the date of due diligence and closing, which is being requested by this amendment. The amendment would allow the due diligence contingencies period to be extended until May 31, 2024. Closing needs to occur by June 28, 2024. The requirement for a medical office building of at least 6,000 square feet within one year remains intact; however, Mr. Touchette has indicated the facility will likely be larger as design moves into final stages, and oriented on the southwest corner of the site. Financial Impact This amendment does not modify the financial terms. Mission/Policy/Goal The goal of the HRA is to promote redevelopment projects. Attachments  Main and Gates Purchase Agreement  Amendment One to the Purchase Agreement EL185\75\938781.v2 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT This First Amendment to Purchase and Sale Agreement (this “First Amendment”) is made this ____ day of ____________, 2024 by and between the Elk River Housing and Redevelopment Authority, a Minnesota body corporate and politic (the “HRA”) and Ronald J. Touchette, a married person (the “Buyer”). WHEREAS, the HRA and the Buyer entered into that certain Purchase and Sale Agreement dated June 21st, 2023 (the “Agreement”) providing for the conveyance by the HRA to the Buyer of certain property located in the City of Elk River, Sherburne County, Minnesota and legally described on the attached Exhibit A (the “Property”); and WHEREAS, due to unanticipated delays, the parties have determined to further extend the Closing Date set forth in the Agreement to June 28, 2024 or such other date on which the Seller and Purchaser may agree; 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 5 of the Agreement. The first paragraph of Paragraph 5 of the Agreement is amended to read as follows: 5. CONTINGENCIES WHICH MUST BE EXERCISED BY WRITTEN NOTICE TO THE HRA ON OR BEFORE MAY 31, 2024 (THE “CONTINGENCY DATE”): 2. Amendment to Paragraph 5.1.1 of the Agreement. Paragraph 5.1.1 of the Agreement is amended to read as follows: 5.1.1. Testing. The Buyer shall have determined that the Buyer is satisfied with the results of, and matters disclosed by, any environmental site assessments (including a Phase I and Phase II, if necessary), soil tests, surveys, engineering inspections, site work estimates, building estimates, hazardous substances, and environmental reviews of the Property, all such tests, assessments, inspections, estimates, and reviews to be obtained at the Buyer’s sole cost and expense. 3. Amendment to Paragraph 5.2 of the Agreement. The last paragraph of Paragraph 5.2 regarding extension of the contingency date is hereby deleted in its entirety. 4. Amendment to Paragraph 6 of the Agreement. The first paragraph of Paragraph 6 of the Agreement is amended to read as follows: 6. CLOSING. The closing of the purchase and sale contemplated by this Agreement (the “Closing”) shall occur on June 28, 2024 or on such other date on which the parties may agree (the “Closing Date”). The HRA agrees to deliver possession of the Property to the Buyer on the Closing Date. EL185\75\938781.v2 5. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase and Sale Agreement as of the date written above. SELLER: BUYER: ELK RIVER HOUSING AND RONALD J. TOUCHETTE REDEVELOPMENT AUTHORITY ________________________________ Denny Chuba, President Ronald J. Touchette ______________________________ Brent O’Neil, Executive Director EL185\75\938781.v2 EXHIBIT A Legal Description of the Property Parcels: Lot 1, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0105 AND; Lot 3 & Lot 4 except the East 15 feet, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0115 AND; Lot 7, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0130 AND; Lot 8, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0135 AND; Lot 9, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0140 AND; Lot 10, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0145 AND; LOT 11 & that part of Lot 12 lying West of the East 4.50 feet of Lot 12, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County, Minnesota. PID 75-401-0150 * All legal descriptions are subject to verification by a survey.