Agenda - Economic Development Authority - 01/08/2015

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Economic Development Authority (EDA) Meeting Date: 01/08/2015 By: Patrick Brama, Administrative Services Title: Consider Purchase Agreement with PSD LLC (portions may be closed to the public) 4. 1. Purpose/Background: PURPOSE Consider purchase agreement (PA) from PSD, LLC. for 13.97 acres of City owned land located within The COR. NOTE: if the Council wishes, the case may be discussed in closed session. BACKGROUND (pervious case, Original PA, zoning amendment) The Ramsey HRA entered into a Purchase Agreement (PA) with PSD for 13.97 acres of City owned land located within The COR on August 06, 2014 (referred to as the "Original PA"). The proposed closing date for the Original PA was no later than September 15, 2014 (termination date). Attached to this case is a copy of the Original PA . On September 11, 2014 Staff received a formal request from PSD, LLC to extend the September 15, 2014 closing date of the Original PA to December 25, 2014. The purpose said request was to provide sufficient time for the City to amend COR -1 Zoning Code; which would allow PSD to construct their proposed project. The amendment included a change in minimum floor area ratio (FAR) from .75 to .65. The City Council reviewed PSD's request to extend the Original PA on September 23, 2014. The Council decided to allow the Original PA to expire and requested staff bring forward a new/updated PA after the proposed COR -1 Zoning Amendment was adopted (and made effective). On October 28, 2014, the City Council adopted an ordinance to amend the COR -1 Zoning Code. This amendment became effective in late December 2014. BACKGROUND (PSD LLC) PSD, LLC. is development company headquartered in Ramsey. PSD LLC is managed by Jim Deal and Matt Kuker. This company is in "good -standing" with the State of Minnesota (Secretary of State Business Registration). PSD owns a several acres of land within the City of Ramsey; which is geographically concentrated within, and just south of, The COR. PSD has a history of completing quality development projects within the City of Ramsey and The COR (Allina, VA, Ramsey Office Plaza, NorthGate, etc.). BACKGROUND (New Purchase Agreement) The Terms and Conditions included in the New PA (purpose of this case) are nearly identical to the Original PA. Below is a general breakdown of major terms. *Identical term as previous PA. • 13.97 acres of land located in The COR* • $1,897,089.60* • $50,000 earnest money* • Government approvals required before closing* • May 01, 2015 closing date What's new? Attached to this case is the New PA. Below is an outline of changes made to the Original PA: 1. Termination/closing dates were changed to May 01, 2015 These changes were made to reflect the actual project timeline and allow sufficient time for Buyer due -diligence; and, to add consistency with other contingencies outlined in this PA (e.g. F. Government Approvals). 2. City versus HRA