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4.02: Consider Purchase Agreement between NIK Management Group and the City of <br />Ramsey for the Former Municipal Center Site <br />Economic Development Manager /Assistant City Administrator Brama presented the staff report. <br />Member Skaff asked if NIK has given any indication on the size or price of homes they want to <br />build. <br />Development Services Manager Gladhill stated NIK would be looking at other subdivisions in <br />the area for comparables and he thought the price range would be between $170,000 and <br />$200,000. <br />Chairperson Steffen asked if staff will influence the size of the lots or is that up to NIK to decide. <br />Development Services Manager Gladhill stated the City Zoning Code will dictate a lot of that but <br />the City can go through a Planned Unit Development process and can negotiate those terms. <br />Staff will go through a concept design phase with the Planning Commission at their next meeting <br />to get some feedback. <br />Chairperson Steffen asked why NIK was offering a price above the listing price. <br />Economic Development Manager /Assistant City Administrator Brama stated they had a separate <br />offer from TR Horton that came in significantly lower. <br />Chairperson Steffen asked if NIK has the capital to start to construct spec homes in May or will <br />they have to wait until the lots are purchased. <br />Economic Development Manager /Assistant City Administrator Brama stated NIK does have a <br />contingency in place as part of the purchase agreement to get their financing secure before close. <br />Verbally Nik has indicated they have reached agreements with First Minnesota Bank but it is not <br />confirmed at this time. <br />Chairperson Steffen asked what contingencies they have in place regarding the closing in May <br />2016. <br />Economic Development Manager /Assistant City Administrator Brama stated there are a number <br />of generic contingencies in place, which are entitlements to the property, site plan approval, and <br />plat and are also requiring a number of predevelopment documents and information. He stated <br />the financing has been taken care of as part of Phase One. The big item is going to be the City <br />clearing the site in time for June opening. <br />Member Hardin stated if this was always intended to be a two -phase closing because of the Fire <br />Station. <br />Economic Development Authority /January 8, 2015 <br />Page 3 of 10 <br />