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HomeMy WebLinkAbout5.1a 97th and Hemmingway Land Sale Memo TO: Economic Development Authority FROM: Jennifer Levitt, City Administrator DATE: February 4, 2022 RE: Syndica, LLP Land Purchase and Sale and Purchase Agreement Background/Discussion 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 EDA authorized the execution of the LOI with Syndica, LLP at the meeting on January 11, 2022 by a unanimous vote. 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 February 4, 2022 Page 2 of 2 Pursuant to Minn. Stat. 469.105, the EDA must hold a public hearing on the sale of the property and publish notice of the hearing at least 10 but not more than 20 days in advance. Such notice was published in the City’s official newspaper for this hearing. Recommendation 1. Approve a resolution authorizing the purchase of property from WAG and sale of property to Syndica, LLP for development purposes. 2. Authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG for the purchase of 22.4 acres for development purposes. 3. Authorize the EDA President and City Administrator to execute the Purchase Agreement with Syndica, LLP for the sale of 25.4 acres for development purposes subject to minor modifications by the City Attorney. Attachments Resolution Purchase Agreement with WAG. Purchase Agreement with Syndica, LLP