EDA sells land to Java Companies as it investigates potential for large, neighborhood convenience store

by Jim Boyle

Editor

A large convenience store, gas station and a small restaurant could be in western Elk River’s future.

The Elk River Economic Development Authority approved a resolution on April 15 authorizing the execution of a purchase agreement for the sale of property at 13530 and 13566 185th Ave. NW to Java Companies. The land is located next to Westbound Liquor, and the agreed-upon purchase price was $360,000.

The EDA received a purchase offer for the properties known as the Fox Haven site at 13530 and 13566 185th Ave. Java Companies is proposing to buy the two properties with the primary focus of securing the construction of a neighborhood convenience store and gas station. There would be surplus property remaining for which Java may pursue an additional project such as a small restaurant, according to Brent O’Neill, the city’s director of economic development.

The offer is for the full listing price of $360,000 and includes a refundable $20,000 earnest money payment. There is a due diligence period of 120 days, plus a buyer option to extend the period an additional 60 days in which $10,000 in earnest money shall convert to nonrefundable, according to documents in the EDA packet.

The closing must occur within 30 days of the due diligence period expiring. The agreement calls for a provision to be included in the deed, which will require the commencement of construction of the convenience store within one year, the documents state. Anticipated net proceeds to the EDA will be approximately $330,000 upon closing.

O’Neill described the convenience store project slated to be no less than 5,800 square feet as new to the market. Construction must be initiated within one year, or the property will revert back to the EDA.

Elk River City Council and EDA Member Jennifer Wagern said it would be good to see something go in that space.