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August 22, 2017 Page 4 of 7 rezoning and guide plan designation revisions that are needed to redevelop the site. With these uncertainties, coupled with the asking price, its likely developers felt there were too many uncertainties that prevented the private market from moving forward with a purchase and subsequent redevelopment. Assistant Community Assets and Development/Planning Director Gundlach reported more recently, staff became aware the sellers were fielding serious offers for reuse of the existing building for a church, school, community center, and/or day care. With a very real potential that the site wouldn’t be redeveloped into its highest and best use, staff informed Council and inquired about interest in the City purchasing the property. The intention with a City purchase is to partner with a developer to redevelop the property into housing. The consensus of the Council was for staff to pursue an offer, subject to certain terms. Staff worked with Louis Suarez of Colliers International, who the City has an existing relationship with through New Brighton Exchange, in making an offer and was informed on Wednesday, August 16th that the City’s offer was accepted. The agreed-upon purchase price is $1.9 million. Beyond the purchase price, the Purchase Agreement includes the following:  A deposit of earnest money in the amount of $100,000 upon execution of the Agreement by both parties. The earnest money will be held with Land Title.  A 45-day due diligence period and access to the property to conduct environmental, geotechnical, and demolition assessments. The costs to perform these tests are anticipated to be $25,000 - $28,000. If these tests reveal conditions the City and/or its future development partner is not prepared to address, the Purchase Agreement can be terminated and the earnest money will be returned.  Completion of a title commitment and resolution of any title objections. If title objections are not resolved to the City’s satisfaction, the City may terminate the Purchase Agreement and the earnest money will be returned.  A closing date which is 14 days after the end of the due diligence period or a date mutually agreed upon that may occur before the 45-day due diligence period expires.  Agreement to allow the seller to occupy the property for up to 90 days past the closing date. The seller will not be required to pay any rent or a license fee. Assistant Community Assets and Development/Planning Director Gundlach stated the seller had not executed the Purchase Agreement to date. Thus, staff is recommending Council authorize the Mayor and City Manager to execute the Agreement once the City Attorney has accepted the final language. This provides the seller adequate time to have its attorney review the Agreement. If revisions reveal substantive changes, staff will bring this request back to Council for re-authorization. Mayor Johnson requested comments from the public at this time. Senator Carolyn Lane, 1908 41st Avenue in Columbia Heights, stated she was in attendance with a group of concerned Tibetan Americans. She explained Minnesota has the second largest Tibetan population in the United States, with her district making up 60% of that population. She reported these Tibetan Americans are educated, have jobs and are an asset to Minnesota. She indicated the Dalai Lama comes to Minnesota every year to meet with this population. She commented she first met with this group 10 years ago and understood they have been searching for a property and noted they were hoping to purchase the Korean Church. She noted their resources were limited but this site was affordable and would meet their needs. She explained the Tibetan community was told by a Korean Church board member just last month that they were it, but now the City has been given the change to outbid them. She stated she understood the City’s position along with the long-term goals for the community. She expressed concern with the realtor and questioned if the bidding was done in good faith. She indicated the City had outbid the Tibetan group by $100,000. She commented on the value of having this group of peaceful people within the community. She requested the Council hear from the Tibetan community and give them their full consideration.