Agenda - Council - 10/25/2016 - Laserfiche WebLink

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psf,- which is below the City's standard asking prices for industrial land($1.7542.50 psfi.As a result, staff is considering this request a "business subsidy."Staff worked with our attorneys to add required language to this agreement to come into compliance with State Statute and our City Policy for business subsidies. UPDATE:purchase agreement now includes an additional$100,000 incentive payment, if the developer completes Phase II within two years (versus the originally proposed four years). See item 6 below for additional details. (3)Earnest Money $10,000 to become non-refundable after inspection period. (4)Inspection Period February 28,2017 (5)Extension Option If the buyer decides to extend the PA,they will be required to place $5,000 of additional non-refundable dollars in earnest for each 60 day extension. (6) Construction Deadline&Incentive Payments Phase 1 completed by 03/01/18 (72,000 sf), $155,000 payment,certificate of occupancy required. Phase 2 completed by 03/01/21 (51,840 sf), $155,000 payment,certificate of occupancy required.* *additional$100,000 if phase 2 completed by 03/01/19 (7) Commissions CBRE paid standard commission on this land transaction(5%). The 5%commission would be paid based on a purchase price of$500,000(i.e. less the potential incentives). UPDATE:purchase agreement previously included language for a 7%commission split between buyer and seller broker, when reviewed by the EDA on 10/06/2016. (8) Closing Closing must occur 30 days after Inspection Period. UPDATE:purchase agreement previously included language for a 60 day closing period when reviewed by the EDA on 10/06/2016. (9)Reassignment Agreement includes language that requires any reassignment to be approved in writing.Agreement does acknowledge Platinum Properties intends to reassign the purchase agreement to a new entity in the future--in which Jeff Hagen of Platinum Properties will be a partial owner. Funding Source: NA Recommendation: (1) This purchase agreement MAY be discussed in closed session(sale price, and deal terms). (2) The City invited Platinum Properties Group to apply for a business subsidy($7,500)in September. Platinum Properties did apply, and Ehlers did complete an an audit/underwriting. The Council's closed session MEMO includes a recommendation from Ehlers. (3) The EDA and City Council reviewed this project on multiple occasions (09/01 EDA,09/13 Council, 10/06 EDA), and provided general support of the project and direction to continue working with the developer. At the EDA's most recent meeting(10/06), support of the project was confirmed,and three requested changes to the PA were made. All three requested changes were accepted by Platinum Properties Group, and have been incorporated in the attached agreement. Said three changes are detailed in the Council's closed session MEMO. At this point,