Agenda - Council - 04/12/2011 - Laserfiche WebLink

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CC Regular Session Date: 04/12/2011 By: Jo Thieling Administrative Services Item #: 7. 5. Information Title: Consider Proposed Amendment to Purchase Agreement - The Residence at The COR Background: The City, HRA and Flaherty and Collins (The Residence) entered into a purchase agreement in December of 2010 for the sale of the parcel immediately west of the existing parking structure. As written, the agreement has had numerous dates for various seller and buyer obligations and due diligence. The majority of those dates have passed. In January of 2011, the City, HRA and F&C chose not to execute their option to cancel the agreement based on the delivery of a train station. Most of the remaining contingencies have been resolved, but there is one remaining opportunity for F&C to cancel the agreement on April 15, 2011 if they are unable to obtain adequate financing. The closing date in the agreement is April29, 2011. F&C has obtained all necessary entitlements to close on the property. F&C has been working with their finance partners and have obtained a funding commitment on the project. This commitment has a number of challenging terms that F&C is continuing to negotiate, but is concerned it will not have a final funding commitment by the April 15th deadline for them to cancel. Observations: F&C has prepared and presented for your consideration a proposed amendment to the purchase agreement that modifies two dates: 1. The April 15, 2011 date to exercise their option to cancel due to financing is proposed to be extended to May 15, 2011. 2. The closing date is proposed to be extended from April 29, 2011 to June 15, 2011. The DM team has worked with staff on the timing of the ramp addition and F&C closing/commencement and has determined that this schedule can be accomplished with the current ramp schedule and assuming the F&C project commences construction on or before June 30, 2011, the HRA's financing sources remain viable. Staff continues to discuss construction coordination issues between the ramp and the The Residence at the COR project and will keep the City Council and HRA apprised of any issues that need to be addressed prior to closing. The City, along with the HRA, executed the original purchase agreement based upon the obligations of both parties in this transaction, thus, the City is also being asked to approve this requested amendment. Recommendation: