The Borough, a new 62-unit townhome-style apartment complex coming to Long Lake is temporarily on hold after the Long Lake city council meeting on Tuesday, June 1.
At that meeting, the council approved a third amendment to the Purchase Agreement with The Borough, LLC., that changes the closing date on properties from June 1 to June 30.
The pause is expected to be temporarily and the project is scheduled to go ahead and be completed on schedule.
“All signs point to this to being a little bump in the road,” city attorney John Thames told the council. “They (Borough, LLC.) believe everything will go through, there is no concerns about commitment to the project or wanting to carry this forward. They simply need a little more time in order to close.”
Thames said the reason for amendment is that an investor with the project had to back out and that they have found new investors and they wanted time to do their due diligence with the project.
Tim Nichols, with the Borough, LLC., told the council, “I wish we were here moving forward and had the closings behind us and were not but I appreciate the overview. We had an investor that for health reasons backed out. We have absolute confidence that we will get this put together.”
He continued, “The merits of the transaction are not in question. There is nothing we want to change, there is nothing we want to do differently. We simply want and need some more time to put the balance of that due diligence together for a couple investors that are looking closely at this and very quickly. We really felt like we had an opportunity to close as of last week with those investors, we didn’t. It was just too quick for them and they asked if we could have an extension.”
The original closing date on buying the properties was May 28, 2021 for the private properties and June 1 for the city owned property that will be used to build the new development.
The approval of the amendment to the agreement pushes those closing dates back to June 30 but Nichols and Thames both said they believe closing will be scheduled before that time and that this delay won’t slow the project down.
“The time we have been talking about is a couple of weeks,” Nichols said. “A couple week delay would probably be plausible but we are well in our ability to perform within our timeline of getting our development started and finished pursuant to our agreements.”
The preliminary and final plat resolution for The Borough located at 455-545 Virgina Ave. and 2045 Wayzata Blvd. W. was unanimously approved by the Long Lake City Council at its meeting on April 20, 2021. Following the plat approval the council approved the Establishing of a Redevelopment Tax Increment Financing (TIF) for the project on 3-1 vote with council member Deirdre Kvale voting no.
According to the site development agreement between the City of Long Lake and the Borough, LLC, the Developer is under contract to purchase nine parcels of real property within the City of Long Lake, totaling approximately 2.94 acres, and has retained a letter of consent for platting and rezoning on one additional adjacent property, totaling approximately 0.17 acres.
The agreement also states the developer will construct on 62 townhome-style apartments, ranging in size between 777 square feet and 1,140 square feet, split between six buildings as follows: three three-story split level buildings containing eight units each and three two-story buildings containing eight, 14, and 16 units.
In other council news:
The June 1 Long Lake city council meeting was the first in-person meeting for the council in over a year.
Mayor Charlie Miner kicked off the meeting by saying, “This is the first time we have meet in person in over a year. Its great to be back here at city hall and being in person and having an audience and not being on a computer screen. I’m glad we are all here and should make for a little better flow of meetings and hope more public participation as well. Its great to see everybody and great to be in person.”
With the council meeting in person, the council approved a resolution ending the period of a Mayor-declared local peace time emergency due to the COVID-19 health pandemic.
The peace time emergency was activated on March 22, 2020 and on March 24, 2020 it was extended indefinitely until June 1, 2021 when it was rescinded.
Fire Chief and designated emergency manager for the city James Van Eyll said, “I feel like it would best at this point and time to rescind that local emergency and go back to normal operations. Hopefully, we don’t have to do this ever again”