Agenda - Economic Development Authority - 10/09/2014

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Economic Development Authority (EDA) Meeting Date: 10/09/2014 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 5. Title: Preview HRA Case: Consider Purchase Agreement from PSD LLC for HRA Owned Land within The COR This case is intended for notification purposes only (as the EDA will assume HRA responsibilities beginning in 2015). Comments are welcomed. NOTE: the attached PA is in DRAFT format. An updated/final version will be included on the HRA 10/14 agenda. Purpose/Background: Purpose Consider a new Purchase Agreement (PA) between the Ramsey HRA and PSD LLC. Background (brief) The proposed PA includes a $1.897M offer from PSD LLC to purchase 13.97 acres of HRA owned land within The COR. The land included in the PA can be referenced in the City's existing property listing with CBRE; specifically, listing #42. The agreement currently under review is considered a "new" PA due to the fact the City previously entered into a nearly identical PA with PSD LLC on August 06, 2014. Included below is additional background; which details the the original PA. Background (detailed) The Ramsey HRA originally entered into a Purchase Agreement (PA) with PSD LLC for 13.97 acres of Ramsey HRA owned land located within The COR on August 06, 2014. The proposed closing date for this original agreement was no later than September 15, 2014 (also referred to as the termination date within the PA). Attached to this case is a copy of the original PA. On September 11 Staff received a formal request from PSD LLC to extend the September 15 closing date to December 25, 2014. Said request is attached to this case. PSD LLC requested an extension to the original PA to provide sufficient time for the City to amend COR-1 Zoning Code; which would allow PSD LLC to construct their proposed project (which the Council reviewed in CONCEPT on September 09). The HRA reviewed PSD's request to amend the original PA on September 23, 2014. The HRA chose to not extend the original PA with PSD LLC for the following reasons: (1) The original PA with PSD LLC technically expired before the HRA had an opportunity to review the PSD LLC proposed amendment; therefore, the original PA became null and void. The HRA indicated a preference for a new PA to be signed with appropriate closing/termination dates; rather than attempting to retro-activate a terminated agreement. (2) The major reason PSD LLC requested an amendment to the existing PA was to allow for more time to complete contingency item F (Government Approvals). Specifically, PSD LLC is interested in making sure the concept development scenario reviewed by the City Council on September 09 would meet City Zoning Ordinances. In order to allow the PSD LLC concept development scenario, the City will need to complete a Zoning Amendment to change the existing minimum floor area ratio (FAR) from .75 to .65 within the