HomeMy WebLinkAbout4.4a 7470 East Point Douglas First Amendment to the Purchase Agreement Memo
TO: Economic Development Authority
FROM: Jaime Mann, Assistant to the City Administrator
DATE: June 23, 2022
RE: First Amendment to the Purchase Agreement with Hang, LLC
Background/Discussion
The property at 7470 East Point Douglas Road, which is located at the corner of Hefner Avenue
and East Point Douglas Road, is currently owned by the EDA and is vacant. The previous uses
at the site included a gas station and most recently the Village Transmission Shop, which closed
the fall of 2018. In 2019, the EDA purchased the land to prepare it for redevelopment and the
building was demolished that same year.
The City of Cottage Grove received a Letter of Intent (LOI) from HANG LLC dated February 4,
2022, for the purchase of the vacant parcel located 7470 East Point Douglas Road. The EDA
authorized the execution of the LOI at the meeting on February 8, 2022 by a unanimous vote.
The EDA held a public hearing for the sale of the property and approved the purchase agreement
at the meeting on April 12, 2022. The vacant parcel is approximately 0.54 acres and the has a
purchase price of $188,179.20. The property is zoned B-2 Retail Zoning District to encourage
retail sales and services by grouping businesses that minimize the influence on surrounding
residential neighborhoods.
Economic Development Authority
June 23, 2022
Page 2 of 2
The site would be the future home of Thai Garden. They are a small, family owned business
and currently have a location in St. Paul, MN.
The building shown in the site plan is 3,050 square feet and shows indoor seating for
approximately 100 people and outdoor seating for approximately 40 people. At this time, no
planning application for the project has been received.
Due diligence work has been delayed on the project so Hang, LLC is asking for an extension on
the due diligence period along with extending the closing date to September 30, 2022 to allow
time to receive the appropriate approvals. Along with this extension, Hang, LLC has agreed to
deposit and additional $10,000 to the escrow account as consideration upon receipt of a fully
executed first amendment to the purchase agreement.
Recommendation
1. Approve Resolution 2022-007 authorizing the First Amendment to the Purchase Agreement
between the City of Cottage Grove and Hang, LLC.
2. Authorize the EDA President and City Administrator to execute the First Amendment to the
Purchase Agreement with Hang, LLC for the sale of 0.54 acres for development purposes.
Attachments
Resolution 2022-007
First Amendment to the Purchase Agreement with Hang, LLC