Council agrees to first‑right and option agreements for DuPonte business park parcels

The Forest Lake City Council approved two related land agreements on two city‑owned parcels in the airport business park to allow a developer time to pursue purchase while the city pursues small‑area planning for the site.

City staff said GONE Development LLC has expressed interest in the southern parcel along Fenway Avenue and asked for a first‑right‑of‑refusal on Lot 1, Block 1, DuPonte Third Edition so the company could match any offer the city receives while planning with neighbors and the Economic Development Authority. Staff recommended entering into the first‑right agreement to protect the city’s planning timeline and to allow negotiation with the interested developer.

Council then approved an option agreement for the adjacent northern parcel, Lot 1, Block 2, DuPonte First Edition, giving GONE Development LLC a one‑year option to market the property to industrial, business‑service, office or commercial recreation users and to enter into good‑faith negotiations on a purchase agreement. The option locks a purchase price of $353,500 and requires the developer to plan for a minimum 30,000 square foot structure or a comparable development program. The agreement requires a one‑time option payment of $15,000 and includes a deed restriction providing for reversion to the city if the property is not developed as negotiated within an agreed sunset period.

Abby (city staff) said the city is not actively marketing the parcels while it pursues planning and that the agreements give the city time to work with neighbors on appropriate land uses. Council members said the arrangements protect city interests while allowing a known interested party to continue feasibility work.

The council approved both motions by voice vote. No roll‑call tallies were provided in the meeting transcript.