ECONOMIC DEVELOPMENT AUTHORITY - Erik Thorvig, Economic Development Coordinator
Title
PUBLIC HEARING AND CONSIDERATION OF THE SALE OF EDA PROPERTY AT 8600 Central avenue
Background
The EDA owns the property at 8600 Central Ave. The EDA purchased the property in 1995 for $279,400. The site is 2.46 acres and zoned B-2 Community Commercial. The property tax the EDA has to pay for the site in 2017 is $26,767 (after 15 years EDA land becomes taxable). The service road was relocated to the west side of Kwik-Trip and completed in the summer of 2015.
The City has been actively marketing the property since October, 2015 at a price of $750,103. The property has garnered some interest because of the “For Sale” sign. Many inquiries were for uses staff didn’t feel were appropriate such as mini-storage and trailer/auto sales. A hotel developer also has inquired over the last two years about developing a hotel on the EDA property and a portion of the adjacent property to the north however no formal offer or proposal has been made.
Java Companies, LLC is offering to purchase the property for $650,000 ($6.06/ft.). They are proposing to construct two retail buildings (2,200 and 3,500 sf.). The smaller building would be for a sandwich shop. The developer has not secured a user for the second building however it is anticipated it would be for a retail/restaurant use. The developer isn’t sure yet whether both buildings would be constructed at the same time.
After reviewing the concept plan staff noted the ratio of building square footage to the size of site is relatively low. The EDA should consider whether this project is significant enough or require the developer to design the site with more building square footage. Staff proposed to the developer to increase the size of the second building. The developer stated “Ideally 3,500 sf. is what we need, not to say that the right user wouldn't go bigger but we have to find the right user.” The purchase agreement and deed would outline minimum improvements based on EDA direction. The deed would also note that if a project doesn’t occur within one year the EDA would repurchase the property at the same price. Lastly, the deed would contain restrictions on use to ensure the site(s) is developed with uses the City desires (i.e. not mini-storage, auto sales, etc.).
The purchase agreement identifies closing to occur 180 days after execution of the agreement. During this time the developer would have to submit a site plan and obtain all necessary approvals for the site. It’s likely a preliminary/final plat will be needed which requires City Council approval.
Attachments
Location Map
Concept Site Plan
Recommendation
It is recommended that the EDA hold the public hearing and subsequently adopt the attached Resolution approving the sale of 8600 Central Ave. to Java Companies, LLC.
Body
BE IT RESOLVED by the Board of Commissions (the “Board) of the Blaine Economic Development Authority (the “EDA”), as follows:
WHEREAS, it is one of the goals and purposes of the Blaine EDA to improve the community, strengthen the tax base and enhance employment opportunities; and
WHEREAS, the EDA owns property located at 8600 Central Ave.; and
WHEREAS, Java Companies, LLC has indicated an interest in purchasing the property at 8600 Central Avenue to develop two retail buildings; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the President and Executive Director of the Blaine Economic Development Authority are here authorized to execute any and all agreements and documents required for the sale and transfer of ownership of 8600 Central Ave. to Java Companies, LLC in the amount of $650,000.00.
PASSED by the Blaine Economic Development Authority this 16th day of March, 2017.