Agenda - Council - 05/10/2016 - Laserfiche WebLink

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been a challenge to generate any interest in this particular property listing. Lifestyle Construction Services LLC Coastal Living is a Florida based business. In Minnesota, they are affiliated with a business known as Maximum Real Estate (who is in good standing with the State of Minnesota Secretary of State). Coastal Living is operated by Bill Gleason of New Hope, MN. Mr. Gleason most notable experience was developing the Edinburgh golf course community in Brooklyn Park. Currently, Mr. Gleason is working on a townhome development in Otsego. City staff does not have detailed information on or experience with this buyer. Proposed Project Mr. Gleason is reviewing several options for the u-shape site at this time. Generally, Mr. Gleason is aware of our Zoning Code and COR Design Standards, and anticipates proposing a project that will comply. At this point, the specific product is unknown. The attached PA includes a provision to have a completed development agreement (and site plan) approved with the City before this PA closes. In other words, the City will have a chance to review the proposed project before closing. As of 05/05/2016, Mr. Gleason is leaning towards a 12-unit, detached, townhome association, walk -out, product. Attached is a very preliminary rendering --the buyer intends to enhance the product design (especially the view from the backyard). Notification: Observations/Alternatives: OBSERVATIONS Listed below are terms/ conditions/ observations related to the attached purchase agreement that staff considers important to highlight for potential discussion. (1) Policy Compliance The attached PA is simply an edited version of the City's adopted "template PA." Therefore, appears to be in compliance with City's land sale policies. The attached offer of $170,000 is a fair price. Because no subsidy is being requested, staff did not check this project against our business or housing subsidy policies. (2) Offer Price $170,000. (3) Earnest Money $5,000 to become hard after contingency period (3%). (4) Contingency Period 08/01/2016. Closing takes place 10 days after. (5) Extension Option If the buyer decides to extend the PA, they will be required to place $2,500 of additional non-refundable dollars in earnest for each 30 day extension. (6) Construction Deadline This agreement does include a construction deadline. Three units per year need to be constructed, over the course of three years. If the buyer defaults, the City can either collect a $3,000 payment per unit, or reclaim property. (7) Development Agreement This agreement requires the buyer to complete the entitlement process before closing. This ensures the City knows what will be constructed, and that it will comply with zoning code. CONSIDERATIONS -development fees will depend on number of units, if 12 units (about $40K in parks and trails, about 40K in other