Agenda - Council - 11/23/2010 - Laserfiche WebLink

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CC Regular Session Date: 11/23/2010 By: Darren Lazan Community Development Information Title: Consider Purchase Agreement for The Residence at The COR - LOT 3, BLOCK 1, COR ONE Item #: 7. 4. Background: The development team has been working with Flaherty and Collins, LLC of Indianapolis, Indiana since October of 2009. Flaherty and Collins is interested in developing transit oriented, upscale apartments in The COR adjacent to and utilizing the existing parking structure. In late April, Flaherty and Collins delivered an LOI which was considered by the team, summarized, and presented to the HRA on April 23rd, 2010, and again on October 19, 2010 where there was considerable discussion. Direction was given by the HRA at the October 19th meeting to continue negotiations with the developer and prepare the formal documents for consideration by both the City Council and the HRA. We have continued to work with the developer to structure an agreement around those deal points. Notification: Public Hearings for the sale of land by the HRA and for public subsidy will occur at the December 14th, 2010 regular city council meeting. Observations: Attached for your consideration as the City Council tonight is the Purchase Agreement, one of several components of the contract documents. Also attached to this case: • A summary of all documents, and when we anticipate those coming forward for various approvals by both the HRA and the City Council. • Memo from Ehlers , the HRA's financial consultant on this project. The HRA and F & C Ramsey, LLC ( "F & C ") are the principal parties to the Purchase Agreement. The Agreement is contingent upon, among other things, the HRA's, the City's and F & C's determination, on or before January 14, 2011, that the City will secure a stop on the North Star Commuter Rail Line and construct a stop and station on or before July 1, 2012. The City's obligations under the Purchase Agreement are to: 1. Substantially complete construction of an approximately 200 stall addition to the existing parking ramp on or before June 30, 2012, subject to force majeure; 2. Record an Amendment to the Parking Improvement Use and Maintenance Agreement that grants F & C an exclusive easement to use 275 stalls in the expanded parking ramp, gives F & C a non - exclusive easement to use other parking spaces in the expanded parking ramp and allocates 25 spaces in the portion of the expanded parking ramp that is not subject to F & C's exclusive easement to F & C for purposes of proof of parking; 3. Acquire and install way finding and stall designation signage in the parking ramp, subject to reimbursement from F & C. F & C is obligated to purchase Lot 3, Block 1, COR ONE, Anoka County, Minnesota together with the easements