The empty, former home of the Brooklyn Center Target location may find a new owner in the Brooklyn Center Economic Development Authority.
The city council, acting as the Economic Development Authority, unanimously approved a resolution approving a purchase option agreement for acquisition of the property at its July 22 meeting.
The Target location closed in February 2019. It has since sat vacant and has been listed for sale at an asking price of $4.2 million.
The council previously gave the nod to city staff members to move forward with possible acquisition of the site at a closed meeting June 10. State statute allows for or requires meetings to be closed under certain circumstances, such as the protection of private data or to develop or to consider offers or counteroffers for the purchase or sale of real or personal property.
Since then, city staff members have been in negotiations with Target for purchase of the property. While the asking price was $4.2 million, in the purchase option agreement, the city can now acquire the property for $3.6 million. According to Hennepin County property tax data, the 2019 assessed market value for the property is $3.8 million.
A purchase option agreement gives the city exclusive rights to perform testing and due diligence on the property and determine if it wants to acquire the property. That is, with a deposit of $25,000 placed in an escrow account, the city would have exclusive rights to determine if it wants the property until Sept. 13, 2019. All deposits would go towards to final purchase of the property. The city could cancel the agreement at any time or for any reason during this period, and be returned $24,000.
Upon Sept. 13, the city could either cancel the sale, purchase the property, or extend the purchase option agreement through Oct. 11 with a second deposit of $25,000.
The 9.01-acre property is currently zoned commercial, and its future land use designation is planned for commercial mixed-use.
The property sits in the city’s so-called opportunity site, an area which is currently being planned for redevelopment. Without the Target property, the city currently owns approximately 35 acres in the larger opportunity site area.
Sale of the site would be as is. City staff members intend to perform a blight analysis and to determine the eligibility of the site for a future tax-increment financing district.
While the city would be responsible for the site’s 2020 property tax bill, the site could become tax-exempt moving forward. The property taxes on the site, payable 2019, were $168,735 and would be expected to be slightly lower for 2020.
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