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HomeMy WebLinkAbout4.3a Memo_PA with Renewal by Andersen TO: Economic Development Authority FROM: Jennifer Levitt, City Administrator DATE: November 5, 2021 RE: Purchase Agreement with Renewal by Andersen Background In October 2021, the City of Cottage Grove had a call with Renewal by Andersen to discuss the need for expansion at their facility located at 9900 Jamaica Avenue South. Renewal by Andersen has seen tremendous growth at their facility and has begun to outgrow their location operations. Renewal by Andersen is looking at the land located to the west of their property and south of Belijah L.L.C. (Gardenworld) for expansion. Belijah L.L.C. has a right of first refusal for part of the vacant property (approximately 218,700 square feet) south of their facility. The right of first refusal allows Belijah L.L.C. the opportunity to match the proposed business terms of a party that has provided a written offer to purchase the land, in this case Renewal by Andersen. Belijah L.L.C. will have five days to accept or reject the offer from Renewal by Andersen. Right of First Refusal Property On the proposed 19.34 acres Renewal by Anderson would construct a 350,000 square foot building and a parking lot with trailer spaces. Discussion The land within the right of first refusal is owned by the WAG Farms trust. Historically, all land in the Business Park has been sold to the EDA and then sold to end user, allowing for cost recovery to make the site pad ready. Economic Development Authority November 5, 2021 Page 2 of 2 The EDA is committed business retention and expansion in the Business Park and Renewal by Andersen has been a great addition and employer in the community. Renewal by Andersen continues to look towards its future business growth and this opportunity to expand their facility and parking for semi-trailers may lead to future considerations of business expansion in our community. Recommendation Authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG Farms Trust for the purchase of 19.34 acres for development purposes. Authorize the EDA President and City Administrator to execute Purchase Agreement with Renewal by Andersen for the purchase of 19.34 acres once the Right of First Refusal expires with Belijah L.L.C. Attachment Purchase agreement from Renewal by Andersen Right of First Refusal to Belijah L.L.C. (Gardenworld) Renewal by Andersen site plan Purchase agreement for WAG