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community in Brooklyn Park. Currently, Mr. Gleason is working on a townhome development in Otsego. City staff <br />does not have detailed information on or experience with this buyer. <br />Proposed Project <br />Mr. Gleason is reviewing several options for the u-shape site at this time. Generally, Mr. Gleason is aware of our <br />Zoning Code and COR Design Standards, and anticipates proposing a project that will comply. At this point, the <br />specific product is unknown. The attached PA includes a provision to have a completed development agreement <br />(and site plan) approved with the City before this PA closes. In other words, the City will have a chance to review <br />the proposed project before closing. <br />Notification: <br />Observations/Alternatives: <br />OBSERVATIONS <br />Listed below are terms/ conditions/ observations related to the attached purchase agreement that staff considers <br />important to highlight for potential discussion. <br />(1) Policy Compliance <br />The attached PA is simply an edited version of the City's adopted "template PA." Therefore, appears to be in <br />compliance with City's land sale policies. The attached offer of $170,000 is a fair price. Because no subsidy is being <br />requested, staff did not check this project against our business or housing subsidy policies. <br />(2) Offer Price <br />$170,000. <br />(3) Earnest Money <br />$5,000 to become hard after contingency period (3%). <br />(4) Contingency Period <br />08/01/2016. Closing takes place 10 days after. <br />(5) Extension Option <br />If the buyer decides to extend the PA, they will be required to place $2,500 of additional non-refundable dollars in <br />earnest for each 30 day extension. <br />CONSIDERATIONS <br />- development fees will depend on number of units, if 24 units (about $81K in parks and trails, about 81K in other <br />fees) <br />-tax base (about $2,500 total per single family home, about 1/3 goes to the City) <br />- consumers (drive traffic to The COR) <br />- development of challenged site (history of no development interest) <br />- good sale price ($170,000, less CBRE commission* and closing fees, will result in little land proceeds) <br />Alternatives <br />The City Council may approve, modify, or reject this proposed Purchase Agreement. Discussion of the price for the <br />property can occur in closed session. <br />Funding Source: <br />NA <br />Recommendation: <br />