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HomeMy WebLinkAbout2017-014 EDARCommissioner Dan Ryan introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2017-14 RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A LETTER OF INTENT TO SELL THE PROPERTIES LOCATED AT 6101 AND 6107 BROOKLYN BOULEVARD WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota ("EDA") is authorized pursuant to Minnesota Statutes, Sections 469,090 to 469.1081 to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, SCA Properties, LLC, or its affiliated assignee, ("Purchaser") is interested in purchasing the two properties the EDA owns at 6101 Brooklyn Boulevard and 6107 Brooklyn Boulevard consisting of approximately 1. 13 acres (collectively, the "Property") for the purposes of constructing an approximately 5,200 sq. ft. adult day care facility that is compatible with the assisted living facility the Purchaser is developing on a neighboring property; and WHEREAS, the Purchaser is proposing to enter into a letter of intent ("LOT"), which is incorporated herein by reference, with the EDA proposing to purchase the Property on terms that include the following: 1.A purchase price of five hundred thousand dollars ($500,000) which will be deferred and paid upon sale or refinancing in accordance with a promissory note to be developed and that will be similarly to the purchase price note entered into for the assisted living facility; 2.A one hundred and twenty (120) day feasibility period during which the Purchaser is to determine whether development of the Property as they propose is feasible; 3.A settlement date of one hundred and eighty (180) days from Purchaser receiving all approvals and financing commitments, but in no case later than fifteen (15) months after execution of the contract of sale; 4.A ninety (90) exclusive negotiating period in which to negotiate and execute a contract of sale, and during which the EDA will not market or negotiate the sale of the Property to others; 5. A provision indicating that the letter of intent and the contract of sale is fully assignable associated with the Purchaser; and 6. A provision indicating the LOl is withdrawn if not fully executed by a date certain; and EDA RESOLUTION NO. 2017-14 WHEREAS, the EDA and Purchaser both acknowledge and agree the terms of the LOT are not binding, that the parties will instead work to negotiate the terms of a binding purchase agreement for the sale of the Property, and that the EDA must conduct a public hearing on the proposed sale before it can approve a proposed purchase agreement. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota ("Board") as follows: The Board hereby approves the LOl with the Purchaser regarding the sale of the Property. 2.The EDA President and Executive Director are authorized to execute the LOI on behalf of the EDA. 3.EDA staff and officials are authorized to negotiate the terms of a purchase agreement with the Purchaser regarding the sale of the Property and the proposed purchase price note for review and approval by the EDA after conducting a public hearing on the proposed sale. September 11, 2017 -)c:t Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Marquita Butler and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Marquita Butler, April Graves, and Dan Ryan and the following voted against the same: none whereupon said resolution was declared duly passed and adopted.