Agenda - Council Work Session - 08/13/2013

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COUNCIL MEMO FORM Meeting Date Agenda Section Item Description Submitted By August 5, 2013 Ordinances and Resolutions ORD/First Amendment to Purchase Agreement; Landmark of Anoka, LLC. (2nd reading) Erik Thorvig, Economic Development Manager BACKGROUND INFORMATION: 9.2 On May 29, 2013 a purchase agreement was entered into between the City of Anoka and Landmark of Anoka, LLC for purchase of approximately 22.5 acres of city owned land north of County Road 116 and west of the Anoka County Library to allow for a 44 lot, single family home development called Rum River Shores. Two contingencies were outlined in the agreement: (a) Buyer and Seller agreeing upon a Development Agreement for the development of the Property by Buyer, which will provide that the Buyer will develop a single family residential subdivision in conformance with the preliminary and final plat. (b) Seller's approval of Buyer's preliminary and final plat. In the event any of the above contingencies have not been satisfied by Buyer, or waived by Seller on or before the date which is sixty (60) days from the date hereof this Agreement shall be voidable at the option of Seller or Buyer. The 60 day period anticipated the project going through approvals in June. Because the approvals have been delayed a month and aren't expected to be acted upon until the August 5th meeting, the purchase agreement must be amended to extend the deadline of the 60 days (July 28th) an additional 30 days to August 27th. The amendment allows the necessary contingencies to be considered by the City Council within the required time. No changes were made between the first and second readings. FINANCIAL IMPACT: The sale price is $440,000 ($10,000/lot) and is subject to closing costs. The city hired an agent to list the property and the sale price is subject to a 6% percent fee. If the number of lots changes as a result of review of the plat, the purchase price is adjusted on a price per lot of $10,000. COUNCIL REOUESTED ACTION: Approve the second reading and adopt the ordinance amending the purchase agreement with Landmark of Anoka, LLC.