HomeMy WebLinkAbout20-009 EDA Purchase Agreement
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 20-009
RESOLUTION AUTHORIZING THE EDA TO ENTER INTO A REAL ESTATE PURCHASE AGREEMENT WITH
THE BEARD GROUP, INC.
Motion By: Braid Second By: Biurkart
WHEREAS,
WHEREAS,
The City of Prior Lake Economic Development Authority (“EDA”) has been working with The Beard
Group, Inc. (“Beard”) on a potential downtown redevelopment project along Main Avenue SE; and
Beard has entered into a purchase agreement to acquire a single-family residential property at 4656
Pleasant Street SE; PID 250020120 (“Property”) to facilitate a downtown Prior Lake redevelopment
project; and
WHEREAS,
Beard has requested the EDA enter into a Real Estate Purchase Agreement whereby the EDA would
purchase the Property from Beard if the proposed redevelopment project does not move forward; and
WHEREAS,
WHEREAS,
WHEREAS,
If the redevelopment of this block does occur and Beard enters into an agreement with the EDA or City
of Prior Lake addressing redevelopment of the Property, such as a Development or TIF Agreement,
the Real Estate Purchase Agreement includes language which automatically terminates the Agreement
and its obligations of the EDA; and
If redevelopment of this block does not occur, the EDA would be required to purchase the Property on
or before January 6, 2022 at a purchase price of $350,000, plus costs Beard incurs to purchase the
property up to $25,000 and future closing costs; and
The EDA does not have enough funding available to guarantee the property purchase, so the Council
action is necessary to commit city funds as a guarantee.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as
follows:
1. The recitals set forth above are incorporated herein.
2. If additional EDA funds are needed to acquire the Property at 4656 Pleasant Street SE in 2022, the City Council
will allocate the necessary funds to the EDA. At that time, the financing options would be reviewed and determined
by the Finance Director (use of reserves, tax levy, debt issuance, etc.)
3. The EDA is authorized to enter into a Real Estate purchase Agreement with The Beard Group, Inc. for property
located at 4656 Pleasant Street. SE.
Passed and adopted by the Prior Lake City Council this 6th day of January 2020.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Lori Olson, Assistant City Manager