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Economic Development Authority (EDA) Meeting Date: 04/07/2016 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 1. Title: Purmort Purchase Agreement for OUTLOT F of Ramsey Town Center 8th Addition [PORTIONS MAY BE CLOSED TO THE PUBLIC] Purpose/Background: PURPOSE Consider the attached Purmort Purchase Agreement for OUTLOT F of Ramsey Town Center 8th Addition [PORTIONS MAY BE CLOSED TO THE PUBLIC]. BACKGROUND City Purchase of OUTLOT F The City of Ramsey purchased The COR (formerly Ramsey Town Center) in 2009 for $6.8M, consisting of 119.26 acres of developable property. As part of the purchase, the City pulled back assessments on all City -owned property, totaling $5.9M. The total cost of the land purchase, including the assessments is $12.7M, which breaks down to $2.44 per square foot. The City purchased The COR with an intent to resurrect the development project and preserve the community's original vision and master plan. The subject property is a 4.38 acre portion of the larger 119.26 acre purchase. Site Information The subject property is roughly 4.38 acres in size and is zoned COR 4 Neighborhood District (Residential). This site is located on the north end of The COR, commonly known as the North Commons Park area. From a development perspective, this site does have various challenges: (1) shape of this lot is a long narrow triangle. A portion of this lot is considered non -buildable (roughly two of the 4.38 acres). Single family lots cannot be built with direct access to Bunker Lake Boulevard. (2) site includes soils unsuitable for building pads. As a result, a portion of soil must be removed. (3) site is low, and will require fill to bring building pads up to proper elevation. (4) located against Bunker Lake Boulevard (County Road 116), which presents desirability challenges for residential users. In late 2015, the City Council reviewed the City's inventory of available City -owned land, and the City's corresponding pricing strategy for each property listing. As part of that discussion, staff was asked to further investigate this particular parcel (including identifying development challenges), and consider alternatives on how to attract private sector interest for the listing (potentially including an adjustment to the asking price). A major reason for that direction was due to the known development challenges listed above. Property Listing The City has officially listed this property with a broker. The City has established an official asking price for this property ($.80 psf or $34,848 per acre). From a market perspective, it's staff experience, that single family residential prices range from $20,000 to $70,000 per acre in Ramsey, depending on a wide variety of factors. Historically, whether it be the City of Ramsey, former owners of Ramsey Town Center, Landform, or CBRE, it has been a challenge to generate interest in this particular property listing. In 2012, the City was able to secure a PA on this property for the sale of one lot at $35K per lot, and the potential for future purchase agreements to sell additional lots to the same developer for a total of $455K total. However, the initial PA required the City to act as