EDA Resolution No. 2023-03 (Rescinding PDA with Powersports Services)CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2023-03
RESCINDING A PRELIMINARY DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY
AND POWERSPORTS SERVICES LLC
BE IT RESOLVED by the Board of Commissioners (the "Board") of the City of
Monticello Economic Development Authority (the "Authority") as follows:
1. Background
1.01. The Authority owns certain property (the "Property") in the City of Monticello,
Minnesota (the "City").
1.02. The Authority and Powersports Services LLC, a Minnesota limited liability
company, or an entity related thereto or affiliated therewith (the "Developer"), entered into
negotiations relating to the Developer's acquisition of the Property and the construction by the
Developer of an approximately 40,000 square foot warehouse and light assembly on the Property
(the "Development").
1.03. The acquisition of the Property by the Developer was linked to the Developer's sale
of certain other property located at 9699 Fallon Avenue in the City pursuant to a Purchase
Agreement (the "Purchase Agreement") approved by the Board on October 12, 2022. The Purchase
Agreement expired on November 30, 2022.
1.04. In connection therewith, on October 12, 2022, the Board approved a Preliminary
Development Agreement (the "PDA"), providing for the future negotiation of a definitive purchase
and development agreement that would have addressed (among other things) the sale of the
Property by the Authority to the Developer and the Development. The PDA provided that the
Developer would have exclusive rights to develop the Property for a period of 1 year with options to
renew for 2 additional 1 year periods. Following approval of the PDA and prior to execution of the
PDA by either party, the Developer requested changes to the terms of the PDA, which were
subsequently discussed and rejected by the Board.
1.05. Unable to reach an agreement over the terms of the PDA with the Developer, the
Board now rescinds and revokes the PDA. In addition, all subsequent requested changes and/or
counteroffers whether communicated verbally or in writing to the Board or Authority staff are
rejected.
2. Recission of PDA.
2.01. The Authority rescinds and revokes the PDA and the PDA is hereby terminated and
cancelled.
2.02. Authority officials and consultants are authorized to take any other actions necessary
to carry out the intent of this resolution.
MN190\175\854210.v2
Approved this 8th day of February, 2023, by the Board of Commissioners of the City of Monticello
Economic Development Authority.
Presiden
ATTEST:
MN 190\175\854210.v2