The City Council has approved terms for a purchase agreement with the East Phillips Neighborhood Institute (EPNI) for the sale of the Roof Depot site in south Minneapolis.
During the 2023 legislative session, City officials, EPNI and members of the Minneapolis legislative delegation agreed in principle to a set of terms for the sale of the Roof Depot site, 1860 28th St E. and 2717 Longfellow Ave., to EPNI for the fair market value of $11.4 million. City staff have moved forward with required actions for a land sale, including sending the purchase agreement through Council.
The agreed-upon deal struck between the three parties in May 2023 included three funding sources for exclusive purchase of the property by EPNI:
- The Legislature appropriated $2 million to apply toward the purchase price of the site, to be paid to the City by July 15, 2023. The City has not received this funding yet.
- EPNI was required to raise an additional $3.7 million in private funds by Sept. 8, 2023.
- Contingent on the $3.7 million successfully raised by EPNI by Sept. 8, 2023, the Minneapolis legislative delegation pledged to secure an additional $5.7 million for the sale during the 2024 session.
The purchase agreement passed today provides EPNI with a one-time, 60-day due diligence period, which effectively establishes a deadline of Nov. 8, 2023 for EPNI to commit its funding into an escrow deposit with a title insurance company, letter of credit and/or personal guaranty as agreed to in the term sheet.
EPNI has agreed to give the City a report on the status of its fundraising by the originally agreed upon deadline of Sept. 8, 2023.
Should all funding deadlines be met and the sale close, the City is committed to finding a new water supply maintenance facility and will explore other locations for this project. The Minnesota Legislature has committed $4.5 million to the City for a new facility.