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HomeMy WebLinkAbout4.3a 97th and Hemmingway LOI Memo TO: Economic Development Authority FROM: Jennifer Levitt, City Administrator DATE: January 6, 2022 RE: Letter of Intent with Syndica, LLP Background/Discussion The City of Cottage Grove has received many inquiries about the property located at 97th Street South and Hemingway Avenue South. On December 17, 2021, the broker that represents the Southeast Industrial property available in the Cottage Grove Business Park reached out about other potential properties in the area. On December 22, 2021, City Administrator Levitt and Assistant Mann hosted a phone call with Andy Heieie from Colliers and Brian Bochman from Enclave Companies (Syndica, LLP) to talk about the available 25.4-acre parcel. The City of Cottage Grove received a Letter of Intent (LOI) from Syndica, LLP dated December 22, 2021 for the purchase of the vacant parcel located at 97th Street South and Hemingway Avenue South. The vacant parcel is approximately 25.4 acres and the LOI includes a purchase price of $3,872,484. The parcel is zoned I2 and is a Minnesota Shovel Ready certified development site through DEED. The 22.4 acres of land within the parcel shaded in yellow 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. The 3-acre parcel shown in green is currently owned by the Cottage Grove Economic Development Authority. Economic Development Authority January 6, 2022 Page 2 of 2 Recommendation Authorize the EDA President and City Administrator to execute the Letter of Intent with Syndica, LLP for the purchase of 25.4 acres located at the corner of 97th Street South and Hemingway Avenue South at $3.50 per square foot. Attachments Letter of Intent from Syndica, LLP