Agenda - Economic Development Authority - 06/04/2015

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SECTION 7: REQUIRED TERMS & CONDITIONS The purpose of this section is to outline minimum terms and conditions that shall be included in PAs for the sale of City owned land. These terms and conditions may be waived or negotiated by the City Council. The City shall develop a "Template PA" based on terms and conditions outlined in this policy. Said Template PA shall be utilized when practical and possible. Use of said Template PA shall be determined on a case-by-case basis. A. Termination Date/Initial Closing Date/ Due -Diligence Period The initial closing 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 include: zoning verification, site plan approval, plat approval, and development agreement approval. City staff shall target about six (6) months as a 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. Earnest Money The City shall require earnest money for all land transactions. City staff shall have the authority to negotiate an acceptable level of earnest money and provide a recommendation for EDA and City Council review. A portion of said earnest money shall become non- refundable after 30-90 days. Earnest money terms shall be determined on a project -by - project basis. C. Contract Extensions Unforeseen circumstances 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. Staff will work with prospective buyer to develop a reasonable and attainable initial closing date; as outlined in Paragraph A above. If the prospective buyer requests an extension to the initial closing date, the City shall require compensation. PA extensions shall require a portion, or all, earnest money to become non-refundable. If a PA is terminated, all non-refundable dollars shall be received by the City. D. Construction Deadlines As part of a standard PA, the City does not require a minimum construction deadline for buildings and improvements. However, on a case-by-case basis, the Council may request for this provision to be included in PAs. NOTE: this statement does not prohibit construction deadlines within other government permits and agreements (development agreements, building permits, business subsidy agreements, 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 COR is anticipated to generate significant local property taxes. The City POLICY FOR THE SALE OF CITY OWNED LAND Page 5 of