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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/Initial Closing Date/ Due -Diligence Period <br />The initial closing date shall be set for within 10 days after all buyer and seller contingencies <br />can be reasonably met. The normally acceptable due -diligence period shall be tied to when <br />City entitlements are met; which commonly include: zoning verification, site plan approval, <br />plat 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. Earnest Money <br />The City shall require earnest money for all land transactions. City staff shall have the <br />authority to negotiate an acceptable level of earnest money and provide a recommendation <br />for EDA and City Council review. The required minimum earnest money shall be determined <br />on a project -by -project basis. <br />C. 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. Staff will work with prospective buyer to develop a reasonable <br />and attainable initial closing date; as outlined in Paragraph A above. <br />If the prospective buyer requests an extension to the initial closing date, 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 />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, business subsidy <br />agreements, etc.). <br />E. Tax Exempt Uses <br />The City owns a large inventory of land located within The COR. This land is situated within a <br />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 />on future property tax revenues from development within The COR. In order to meet future <br />obligations to residents and businesses, the City is not seeking to sell City owned land <br />located within The COR to tax exempt users. <br />POLICY FOR THE SALE OF CITY OWNED LAND Page 5 of 6 <br />