HomeMy WebLinkAbout4.2 Letter of Intent with Pizza Ranch of Cottage Grove LLC
TO: Economic Development Authority
FROM: Christine Costello, Acting Community and Economic Development Director
Matt Wolf, Economic Development Specialist
DATE: June 3, 2019
RE: Letter of Intent Cottage Grove Pizza Ranch, LLC
Background
Since 2014, the City of Cottage Grove Economic Development Authority has worked to market
their 1.67-acre parcel of land to the north of Muddy Cow and west of Oakwood Park. In 2014,
an RFP for a hotel was sent out to 31 hotel developers to gauge their interest in development
of the site. The City received interest from one hotel developer at that time but the developer
chose not to further pursue a hotel development on the site. The EDA has also received
interest from two other hotel developers since that time but those developers as well chose not
to pursue a hotel development on the site due to concerns with meeting parking needs on the
site for a hotel and on making the project financially viable.
In the meantime, the EDA has continued to market the site at such events as ICSC RECon
Convention in Las Vegas and the MNCAR Expo for hotel and/or commercial development.
Figure1. - Proposed site of future Pizza Ranch
Economic Development Authority
June 18, 2019
Page 2 of 2
Discussion
On May 31st, the EDA received a Letter of Intent (LOI) from Pizza Ranch for the proposed
purchase of the 1.67 acre site owned by the EDA. The purchase price for the property is
$650,000 and Pizza Ranch has offered to purchase the site for $600,000. The reduction in the
purchase price is because the Pizza Ranch Corporation requires additional environmental
testing be completed and due to the grading of the proposed site. Pizza Ranch will still be
required to pay all building and development fees. Based upon the LOI the parties shall enter
into a Purchase Agreement of the property with terms of the sale within 14 business days of
the property. The buyer will be required within five business days after execution of the
purchase agreement to deposit in escrow $10,000 earnest money that will be applied to the
purchase price at closing.
Currently Pizza Ranch is proposing an 8,000 square foot building that will contain a fun zone
for kids. The restaurant would also have 110-115 parking spaces, 3-4 birthday party rooms,
and a pick-up window for orders made online. The proposed site plan for Pizza Ranch is
subject to change based on final design of the building to fit the site. Staff will continue to work
with Pizza Ranch on the site and zoning requirements to ensure it meets ordinance
requirements.
Recommendation
By Motion:
Authorize the EDA Executive Director to execute the Letter of Intent (LOI) with Pizza Ranch of
Cottage Grove LLC for the sale of the 1.67-acre EDA-owned parcel of land north of 7350
Hardwood Court.
Attachments
Pizza Ranch of Cottage Grove LLC., LOI