Agenda - Economic Development Authority - 01/08/2015

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