On June 10, 2019 the City Council held a closed work session to discuss the possible acquisition of 6100 Shingle Creek Parkway. The purpose of the closed meeting was to discuss the possibility of developing an offer to purchase the former Target property. The property is within the area known as the Opportunity Site, an area identified as a targeted redevelopment site and currently the subject of a significant master planning effort by the City. At the meeting the City Council directed staff to submit a letter of intent to purchase the property and enter into negotiations with Target. 

The City has partnered with Alatus to master develop 35 acres of EDA-owned property near this parcel. As the master planning has progressed, it has become clear that the strategic acquisition of the former Target site would be advantageous to the future plans for the City and would position the area in the best possible way. Further, the City's acquisition of the site would ensure that the property is not reused in a manner that would be detrimental to the City's future plans. 

The Target store closed in late February of 2019 and the 9-acre parcel has been on the market for $4.2 million ever since. The City has received numerous calls from prospective buyers regarding the site for a range of possible uses. The protective covenants from the adjacent retail strip center limited the potential reuse for the building, as did the City's zoning.

The City submitted a letter of intent for the property following the City Council work session, offering $3.6 million and a relatively fast closing with few contingencies. Target accepted the offer and an option agreement was drafted. The Option Agreement has been reviewed by the City Attorney and is being recommended for consideration. 

Option Agreement Terms

The purchase price for the property would be $3.6 million with the City paying an option deposit of $25,000 at signing of the Option Agreement for exclusive rights to purchase the property. The Option Agreement would extend through September 13, 2019 where upon the City could choose to proceed with closing on the property, or to extend the option to purchase to October 11, 2019 for an additional $25,000 deposit. If the City chooses to terminate the Option Agreement for any reason, it may do so prior to September 13, 2019 and receive the full deposit, minus $1,000 back.  Any deposit paid will be considered part of the purchase price paid to the seller at the time of closing. 

During the Option Agreement the City has the right to conduct any testing and due diligence it deems appropriate. While the nature of the sale is to purchase the building "as-is", the City still has an interest in future redevelopment of the property, meaning a blight analysis to determine the eligibility of the sight for a future TIF district will be conducted. 

The City will also examine any covenants and reciprocal easement and maintenance agreements associated with the property and the adjacent retail center. 

The 2019 taxes on the property were $168,735.47. This is anticipated to be lower in 2020 due to a reduction in the property valuation; however, given that the closing would occur after July 1st it is too late in the year to have the property made tax exempt for 2020. the City would be responsible for the 2020 property taxes. Beyond that the property would be considered tax exempt.