Agenda - Planning Commission - 08/04/2016

Home

http://www.oman-gibson.com. In summary, OGA is a Tennessee based national developer that specializes in medical office users. Proposed Project OGA is proposing a 5,100 sf medical office building in The COR. The use is an out -patient medical clinic (further details can be provided in closed session to the EDA). Please see OGA website for example projects (see completed projects page). Notification: NA 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, it generally appears to be in compliance with City's land sale policies. Because no subsidy is being requested, staff did not check this project against our business or housing subsidy policies. (2) Offer Price The attached offer of $230,000 appears to be a reasonable asking price ($261,000 CBRE asking price). It should be noted, OGA adjusted their purchase offer on this property to account for the required road extension (hence the roughly $30,000 discrepancy). (3) Earnest Money $10,000 to become hard after contingency period (4%). (4) Contingency Period 180 days after effective date. (5) Extension Option If the buyer decides to extend contingency period, they will be required to place $5,000 of additional dollars in earnest for each 30 day extension (max of two). (6) Construction Deadline This agreement does include a construction deadline. However, it is not a "strong" restriction (see provision #30 in the PA). OGA negotiated to remove the City's ability to legally enforce this provision (i.e. a recorded right -of -re-entry or financial penalty). Generally, staff is not too concerned about this provision for this particular development. The intent of the construction deadline provision (within the City's land sale policy) was to protect the City from two scenarios (1) a developer buying more land than what's needed for a primary development proposal --and sitting on the remainder for future speculative development, and (2) provide the City assurances on a proposed project in exchange for a business subsidy. (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, before closing. This Purchase Agreement also requires OGA to provide visual renderings for architectural review by the Planning Commission and City Council (which is consistent with the City's land sale policy). However, OGA negotiated to remove the City's express ability to approve/ deny the project simply based on if we like the way the project looks (i.e. we don't have any way to legally enforce our architectural review provision). With that said, the OGA project still must comply with City zoning regulations and COR Design Standards --which are fairly strict. Additionally, OGA has a track record of completing quality projects --and has indicated an interest to complete a nice looking project in The COR.