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SECTION 7: REQUIRED TERMS & CONDITIONS <br />The purpose of this section is to outline minimum terms and conditions that shall be included in <br />PAs for the sale of City owned land. These terms and conditions may be waived or negotiated <br />by the City Council. <br />A. Termination Date/ Closing Date/ Due -Diligence Period <br />The closing date shall be set for within 10 days after all buyer and seller contingencies can <br />be reasonably met. The normally acceptable due -diligence period shall be tied to when City <br />entitlements are met; which commonly include: zoning verification, site plan approval, plat <br />approval, and development agreement approval. City staff shall target 6-7 months as a <br />standard due -diligence period. However, depending on the use, size and complexity of a <br />proposed project, a longer due -diligence period may be acceptable. <br />B. Contract Extensions <br />Unforeseen circumstances may arise while completing due -diligence for the development of <br />real estate. Often times, this results in a request from a prospective buyer for a PA due - <br />diligence period extension. The City may include a provision for a 60 day due -diligence <br />period extension, with a written notice by the buyer. Said extension notice must be made <br />21 days before the original PA termination date in writing; and may not require additional <br />compensation from the buyer. <br />If the prospective buyer requests a second PA due -diligence period extension, the City shall <br />require compensation. Each 30-day PA extension shall require 33.3% of earnest money to <br />become non-refundable. If a PA is terminated, all non-refundable dollars shall be received <br />by the City. <br />C. Earnest Monet/ <br />The City shall require the following minimum schedule for earnest money: <br />Earnest Monet/ (% of Sale Price) Sale Price Range <br />Whichever is greater <br />2.0% or $3,000 $1 - $249,000 <br />1.85 % or $5000 $250,000 - $499,000 <br />1.75% or $10,000 $500,000+ <br />D. Construction Deadlines <br />As part of a standard PA, the City does not require a minimum construction deadline for <br />buildings and improvements. However, on a case -by -case basis, the Council may request for <br />this provision to be included in PAs. <br />NOTE: this statement does not prohibit construction deadlines within other government <br />permits and agreements (development agreements, building permits, etc.). <br />E. Tax Exempt Uses <br />The City owns a large inventory of land located within The COR. This land is situated within <br />a prime location for intense commercial, office and residential development. The <br />development of The COR is anticipated to generate significant local property taxes. The City <br />of Ramsey has identified several future high priority public improvement projects that rely <br />POLICY FOR THE SALE OF CITY OWNED LAND Page 4 of 5 <br />