05.04 - Request to Purchase Business Park Lot

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Job Creation and Retention Information E and P Manufacturing Services currently have 3 employees, including Earl and Patricia. With E and P's relocation to the Pequot Lakes Business Park they plan to create 1 —2 jobs within the next two years. The current hourly wage range is$19.00 to $30.00 per hour. Financing Plans Earl and Patricia plan to purchase the land and finance the building personally and then lease it back to E and P Manufacturing Services, LLC. A total financing package will be used to complete the building project including equity and debt. City Council Considerations The following items should be considered during the purchase agreement process of Block 1 Lot 3 by E and P Manufacturing Services, LLC: a. Pequot Lakes Site Purchase Process (See attachment.) b. Size and price of Block 1 Lot 3 according to the city: 1.78 acres=$53,400 c. Costs and timeline: i. Closing costs are generally less than$500. ii. $2,500 earnest money has been secured by the City from the company. After closing the remainder of earnest money is returned to the company. iii. Closing generally takes about 2 to 4 weeks. iv. The city uses their attorney for all closing processes. v. Business must start site preparation and construction within one year of acquiring property. vi. There is a municipal sewer connection fee to be paid by the purchaser at a current rate of$4,900.00, per unit. vii. There is a municipal water connection fee to be paid by the purchaser at a current rate of$4,900.00, per unit. viii. There is a water meter fee to be paid by the purchaser at a rate to be determined by the Water/Wastewater Superintendent. ix. Building permit fees are based on square footage of the building and will be paid for by purchaser. x. It will be the responsibility of each Business Park property owner to maintain and landscape their property in accordance with the regulations established in the Zoning Ordinance. Page 2 of 6