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Home My WebLink About6.b. Discussion of Purchase Agreement for Proposed Business Park CITY OF ROSEMOUNT EXECUTIVE S'OI++�SA,RY FOR ACTION PORT AL7THORITY COMMISSION MEETING DATE. MAY 17, 1993 AGENDA ITEM: PURCHASE AGREEMENT FOR PROPOSED AGENDA SECTION: BUSINESS PARK NEW BUSINESS PREPARED BY: JOHN MILLER, AGEND��lY! � C7 ECONOMIC DEVELOPMENT COORDINATOR ATTACHMENTS: NONE APPROVED BY: At its February 8 meeting, the Port Authority tabled action entering into a purchase agreement with Roy Abbott for 80 acres of land near the intersection of C.R. 42 and T.H. 3. At that time seueral commissioners vrere relucCan� to approve completion of the ag�:eement as there were no identified users for any of the property. In the' interim, negotiation� with Carlson Rosemr�unt Partners, Mu7.lez Family Theaters, and Ringer Carporation have been started. In additicm, ��s�re exists a passibility of se].ling °drainage capacaty11 irs the wetland� t� CMC Heartland for its pro3ect north of C.R. 42. However, before any agreements ean be reaehed, th� Port Authority needs to deteYznir�e the purehase price of the Abbott land. I am recommending at this time the Port Authority authorize itr staff to negotiate a purchase agreement with Ntr. Abbott to includ� at � mini�um the following: T, Contract far Deed 2. Interest rate 7 p�rcent simp].e 3. Five-year term 4. Ten year amortization 5, galldon in five years (atate law allows our contract to be no longer than 5 years) 6. Purchase of the entire 8Q.]. acres 7. Non-recourse 8, Twenty percent down, payable at closing �;�,,,�p �. Abbott held harmless frcam iiens and contracts r r� 10. itelease af 16 acres 1.1. Orderly release thereafter at 120 percent of average a�rea3e Price 12. Purch�se price of $450,OQ0 13. Option price of $ . 14. Sale contingent an land being glaced in th� MUSA boundary by` Metropolitan Cauneil -,,,�Q �. Sale contingent upan Port Authority negotiating development agreemerst with �id�� Carlson Rosemoun� Partners and Muller Family Theater, f4r use of a portion of the praperty. The purchase agreeanent would be pxesented fer your approval at the June l meeting. The purchase woulti also have to be �pprav�d by th� City Council . R�CO�+II�IENDED ACTIONo Wo�k session i�.em. �i�ect� staff to negotia�e a purchase agreement vaith 12oy Abbo�.t and place the agreement on the June 1 Part Authority agenda, - P�RT AIITHORITX ACTI4N: ° CITY OF ROSEMOUNT PORT AUTHORITY V�ORR SESSION A G E N D A May 17, 1993 (Monday) 5 :30 p.m. * * * * * * * * * * Fire Station 1, CALL TO ORDER 2 , ADDITIONS/CORRECTIONS TO THE AGENDA ON MINUTES 3 , APPROVAL OF APRIL 20, 1993 CLOSED EXECUTIVE SESSI 4 , AFPROVAL OF MAY 3 , 1993 REGULAR MEETING MINUTES 5 , BILLS AND CODMNNICATIONS A. SEH, Inc. g, Economic Development Association of Minnesota 6 , NE�n1 BUSINESS Re ort by A, presentation of Business Park Feasibility P SEH, Inc. (Dave Simons) g, Discussion of Purchase Agreement for Proposed Business Park � , CHAIR' S REPORT g , EXECUTIVE DIRECTOR' S REPORT g , ADJOURNMENT CITY OF ROSEMOUNT EXECUTIVE SUD�lA,RY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: MAY 17, 1993 AGENDA ITEM: PURCHASE AGREEMENT FOR PROPOSED AGE'1�TDA SECTION: BUSINESS PARK NEW BUSINESS PREPARED BY: JOHN MILLER, AGEND ECONOMIC DEVELOPMENT COORDINATOR �� ATTACHMENTS: NONE APPROVED BY: At its February 8 meeting, the Port Authority tabled action entering into a purchase agreement with Roy Abbott for 80 acres of land near the intersection of C.R. 42 and T.H. 3. At that time several commissioners were reluctant to approve completion of the agreement as there were no identified users for any of the property. In the interim, negotiations with Carlson Rosemount Partners, Muller Family Theaters, and Ringer Corporation have been started. In addition, there exists a possibility of selling "drainage capacity" in the wetland. to CMC Heartland for its project north of C.R. 42. However, before any agreements can be reached, the Port Authority needs to determine the purchase price of the Abbott land. I am recommending at this time the Port Authority authorize its staff to negotiate a purchase agreement with Mr. Abbott to include at a minimum the following: 1. Contract for Deed 2. Interest rate 7 percent simple 3. Five-year term 4. Ten year amortization 5. Balloon in five years (state law allows our contract to be no longer than 5 years) 6. Purchase of the entire 80.1 acres 7. Non-recourse 8. Twenty percent down, payable at closing 9. Abbott held harmless from liens and contracts 10. Release of 16 acres 11. Orderly release thereafter at 120 percent of average acreage price 12. Purchase price of $450,000 13 . Option price of $ 14. Sale contingent on land being placed in the MUSA boundary by Metropolitan Council 15. Sale contingent upon Port Authority negotiating development agreement with Carlson Rosemount Partners and Muller Family Theater, for use of a portion of the property. The purchase agreement would be presented for your approval at the June l meeting. The purchase would also have to be approved by the City Council . RECON�SENDFD ACTION: Work session item. Direct staff to negotiate a purchase agreement with Roy Abbott and place the agreement on the June 1 Port Authority agenda. PORT AUTHORITY ACTION: ' i�� a osevvcouvi� PHONE (612)4234411 2875-145th Street West,Rosemount,Minnesota MAYOR FAX (fi12)423-5203 Mailing Address: Edward B.McMenomy P.d.Box 510,Rosemount,Minnesota 5506&0510 COUNCILMEMBERS Sheila Klassen James(Aed)Staats Harry Willoox 'Dennis Wippermann ' ADMINISTRATOR T0: John Miller, Economic Development oo�dinator stePna��k FROM: Stephan Jilk, City Administrator , � � . DATE: May 18, 1993 RE: Port Authority Meeting - May 17, 1993 At the May 17th meeting of the Port Authority the Board did: 1) approve the bills submitted; 2) approve the minutes; 3) advised Dave Simons to continue to completion his feasibility report for Che business park; 4) approved having us negotiate a purchase option with Roy Abott for the 80. 1 acres; and 5) discuss the Carlson Mall project and asked for information on the original commitment made to them by the EDA. I ask you to set up a meeting with Ed Reimer to discuss the - purchase option. Before you do that we need to talk. Review the record and pull information on the original commitment to the Carlsons. Begin to prepare a complete package for consideration by the Board on the Abott property. This means putting the project into the format approved by the Port Authority and in preparation Co take this to the City Council which you will have to do. You will need to develop project analysis including cost, eash flow, financing, information on zoning etc. for the business park. The Port Authority is expecting this by the meeting on the June lst. . lj � �ver-�t�ings �oming ��i C`-Jlosemoun�� . ..� o �.