HomeMy WebLinkAbout4.5a 97th and Hemmingway Land Sale Extension 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 WAG Farms Trust
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 EDA authorized the execution of the Purchase Agreement (PA)
at the meeting on February 8, 2022 by a unanimous vote.
The 22.4 acres of land within the parcel shaded in yellow is owned by the WAG Farms trust
(WAG). 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
June 23, 2022
Page 2 of 2
There have been some supply chain issues with roofing materials, so Syndica will be submitting
a notice that they are exercising the First Extension Option which was part of their original
Purchase Agreement. Exercising this extension means that $35,000 of the original earnest money
becomes nonrefundable. If we proceed to closing, the earnest money will be applied to the
purchase price.
With Syndica exercising the First Extension Option, the EDA needs to amend the original
Purchase Agreement with WAG. The First Amendment to the Purchase Agreement extends the
closing date for the purchase from WAG to the EDA to be on or before August 31, 2022. This
extension covers the two extension options that Syndica has available from their Purchase
Agreement.
Recommendation
1. Adopt a resolution approving the First Amendment to the Purchase Agreement between WAG
Farms Trust and the Cottage Grove Economic Development Authority.
2. Authorize the EDA President and City Administrator to execute the First Amendment to the
Purchase Agreement with WAG to extend the closing date to on or before August 31, 2022.
Attachments
Resolution 2022-008
First Amendment to the Purchase Agreement with WAG