Economic Development Authority - Erik Thorvig, Community Development Director
Title
Title
Approval of Purchase Agreement to Purchase Properties at 10590 Radisson Road, 10600 Radisson Road, and 2150 106th Lane
end
Executive Summary
Approve a purchase agreement to purchase properties at 10590 Radisson Road, 10600 Radisson Road, and 2150 106th Lane.
Background
The subject properties are owned and operated by Blake Drilling. The existing buildings were built in the late 1970s/early 1980s. The site has extensive outdoor storage for the operation of the business which is allowed, however not consistent with the overall redevelopment vision for the area. The properties have been for sale for over a year and are listed for $2.3M. The sales brochure is attached. Blake Drilling is relocating their operation to Columbus as they have maximized their current site and need additional space.
The properties are within the 105th Avenue/Radisson Road redevelopment area as identified in the 2040 Comprehensive Plan. The EDA has been active in acquiring property within this redevelopment area since 2015. Attached is a map showing property currently owned by the EDA and the subject properties. Redevelopment of highly visible property, such as the subject properties is important in accomplishing the overall redevelopment vision for the area. By purchasing property within a redevelopment area, the EDA has full control over the future use and can spur redevelopment activity quicker by working with the private market.
The EDA discussed an offer price at the June 21, 2021 closed session. The proposed purchase price of $1.9M is consistent with the direction provided to staff by the EDA in the closed session. The EDA has various funding sources for the purchase. If Blake Drilling sells the property they will need to lease back the property for approximately 9 months while they relocate the entire operation to Columbus. The EDA and Blake Drilling would enter into a lease agreement that would require approval by the EDA. The lease agreement would be negotiated between executing the purchase agreement and closing of the property. After Blake Drilling vacates the property, the buildings would be demolished and the site would remain vacant until new development occurs.
Strategic Plan Relationship
Redevelopment of the 105th Avenue/Radisson Road area is identified as a strategic initiative in the City’s Strategic Plan. Redevelopment of the 105th Avenue/Radisson Road area is also identified as a priority in the 2040 Comprehensive Plan.
Board/Commission Review
Not applicable
Financial Impact
The purchase price is $1.9M. The EDA has various funding sources for the purchase. The seller would like to lease back the property for approximately 9 months as they relocate to their new location. The lease agreement is still to be negotiated, however it is anticipated there would be additional revenue to the EDA.
Public Outreach/Input
Not applicable
Staff Recommendation
Direct the president and executive director to execute the attached purchase agreement. The city attorney is currently reviewing the draft purchase agreement and there may be changes to the document that can be approved administratively.
Attachment List
Area Map
Property Flyer
Draft Purchase Agreement
Body
WHEREAS, portions of the industrial park at 105th Avenue and Radisson Road have been identified as a redevelopment area in the 2040 Comprehensive Plan; and
WHEREAS, the properties at 10590 Radisson Road, 10600 Radisson Road, and 2150 106th Lane are currently for sale and are within the redevelopment area; and
WHEREAS, the Blaine Economic Development Authority directed staff to offer to purchase the properties to accomplish redevelopment plans for the area; and
WHEREAS, a purchase agreement has been prepared where the EDA would purchase the subject properties for a purchase price of $1.9M.; and
WHEREAS, the proposal meets several goals and objectives of the 2040 Comprehensive Plan including the purchase of property in an identified redevelopment area and expansion of tax base through redevelopment.
NOW THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Authority hereby approves entering into a purchase agreement for 10590 Radisson Road, 10600 Radisson Road, and 2150 106th Lane and authorizes the executive director and president to execute in any necessary documents.
PASSED by the Blaine Economic Development Authority this 19th day of July, 2021.