Agenda - Council - 02/23/2016 - Laserfiche WebLink

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City of #,,k. RAMSEY 7550 Sunwood Drive NW • Ramsey, MN 55303 City Hall: 763.427.1410 • Fax: 763.427.5543 www.cityoframsey.com HARVEST ESTATES: REQUEST FOR EXTENSION CITY STAFF RECOMMENDATION VERSION 1.4 - FEBRUARY 19, 2016 NIK Management, on behalf of G S Land, LLC (Buyer), is requesting an extension to two (2) contracts with the City of Ramsey for Harvest Estates, a 44 lot detached, single-family subdivision: 1. Development Agreement for public improvements (Stage I and Stage II Improvements) [Phase 1] 2. Purchase Agreement [Phase 2] SECTION 1: EXISTING CONTRACTS Development Agreement (Phase 1) Paragraph 6 states that the Buyer agrees to construct an interim cul-de-sac on 152nd Lane NW between Phase 1 and Phase 2 in the event Phase 2 has not commenced by August 31, 2016. An interim solution on 152nd Lane NW was chosen due to the fact that the demolition of existing improvements had not yet been formally approved by the City. The existing PD Building eliminated the possibility of constructing a cul-de-sac in its final location on 152nd Circle NW. Purchase Agreement (Phase 2) Paragraph 3 of the Purchase Agreement states that closing on Phase 2 shall occur within 30 days after the Seller provides written notice to Buyer that demolition of existing improvements is completed. Demolition of existing improvements is anticipated to commence on or about April 1, 2016 and be completed by end of May, subject to the approval of bids for demolition services by the City Council. It is anticipated, based on the assumptions above, that Buyer would be expected to close on or about July 1, 2016 under the existing contract. SECTION 2: BUYER REQUESTED EXTENSION Buyer is requesting a one (1) year extension to the Purchase Agreement and Development Agreement. SECTION 3: PROPOSED CITY TERMS Development Agreement (Phase 1) — Prepared by: Tim Gladhill, Community Development Director 1. Amend Paragraph 6 to amend commencement date to August 31, 2017 (previously August 31, 2016). a. This allows closing to complete, then providing 30 days to commence the project. 2. Financial Guarantee in the amount of 125% the cost to construct the interim cul-de-sac shall be retained until Phase 2 has commenced or interim cul-de-sac is constructed. A warranty in the amount of 25% the cost of the interim cul-de- sac shall be retained for a period of one (1) year upon acceptance by the City that said improvement is complete. Both the Financial Guarantee and Warranty must be in the form of cash escrow or letter of credit acceptable to the form of It is our mission to work together to responsibly grow our community, and to provide quality, cost-effective and efficient government services.