ECONOMIC DEVELOPMENT AUTHORITY - Erik Thorvig, Economic Development Coordinator
Title
APPROVE PURCHASE AGREEMENT FOR 10549 NASSAU STREET NE
Background
The area north of 105th Avenue, west of Radisson Road has been identified as a redevelopment area in the 2040 Comprehensive Plan (see attached map). Redevelopment is identified for this area in an effort to improve the appearance of a highly visible area, and increase employment and tax base. In general the area includes older, and in some instances, obsolete industrial buildings with outside storage. The strategy identified in the comprehensive plan is for the EDA to acquire property from willing sellers as they come up. The long-term vision for the area is to create sites for commercial and/or light industrial development.
Since 2016, the EDA has acquired three properties in the area. These properties are 10610 Nassau St., 10525 Nassau St. and 2111 105th Ave. In all of these instances either the owner approached the city or the property was for sale. Staff has been in conversations with the owner of 10549 Nassau St. The property includes two buildings built in 1971. The south building is used for personal storage by the owner and the north building has recently been vacated by a tenant. Staff completed an appraisal of the property which valued it at $1,200,000. On March 21, 2019 the city council discussed a proposed offer on the property. After negotiation with the property owner, an agreed upon price of $1,200,000 is proposed. If approved, the purchase agreement outlines a closing date on or before December 31, 2019. This allows time for the current owner to remove all personal property. Sometime next spring demolition of the buildings would occur.
The purchase would be funded from existing pooled redevelopment TIF dollars. Redevelopment TIF funds are designated for activities like acquiring property for redevelopment. The purchase price of $1.2mil is consistent with the budget staff has for this fund.
Recommendation
Approve the attached Resolution.
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, redevelopment of 105th Avenue and Nassau St. has been identified as a redevelopment area in the 2030 and 2040 comprehensive plan; and
WHEREAS, the properties at 10549 Nassau St. is for sale and within the redevelopment area; 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 purchase of 10549 Nassau St at a purchase price of $1,200,000 plus customary real estate closing and transaction costs.
PASSED by the Blaine Economic Development Authority this 17th day of June, 2019.