Oakdale EDA votes to terminate Tanners Lake development agreement unless developer meets conditions by July 28

The Oakdale Economic Development Authority voted July 14 to terminate the purchase and development assistance agreement with Tanners Lake LLC unless the developer satisfies three conditions by July 28: deposit $1,000,000 in earnest money with the EDA; provide evidence that all liens on Parcel 2 (325 Geneva Avenue) have been released, specifically a private mechanic’s lien of approximately $665,000 and a private mortgage of approximately $427,000; and demonstrate financing and equity commitments satisfactory to the EDA executive director.

Andy Gitlov presented staff’s recommendation and outlined the proposed termination motion, saying the developer missed a closing deadline and staff did not have confidence additional time would move the project forward. “The developer was required to acquire EDA property and close by April 13. That deadline did not happen… City staff does not have confidence additional time result in the project moving forward,” Gitlov said.

City attorney Jim Thompson read precise motion language on the record: termination effective 07/28/2026 unless the developer deposits $1,000,000; clears liens on Parcel 2 including an approximate $665,000 mechanic’s lien and a $427,000 mortgage; and provides proof of financing in accordance with the development agreement. Commissioners discussed whether the requirement that financing be “in place” should be clarified; Thompson and other commissioners agreed the operative standard is satisfaction of the EDA executive director. The EDA voted to adopt the termination motion and separately voted to decline exercising the private purchase agreement that was attached to the development agreement.

Why it matters: the action ends the EDA’s current deal with the developer unless those financial and title conditions are met within two weeks, preserving the EDA’s options and avoiding an uncertain purchase with outstanding liens. The motion notes the city may elect to purchase a private parcel at 325 Geneva Avenue but staff recommended not to exercise that option because of the liens.

Next steps: if the developer meets all conditions by July 28, the agreement could remain in effect; otherwise the agreement will terminate as of that date and staff will proceed according to EDA direction. The EDA asked staff and legal counsel to enter the precise motion language into the record.