Agenda - Economic Development Authority - 03/09/2017

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The attached purchase agreement was modeled after the City's template purchase agreement and policy for selling city owned land. Staff believes the attached purchase agreement doesn't have any major red flags/issues. Below is a summary of major deal points (often times called a term sheet). The attached agreement was drafted by the City Attorney. (A)Purchase Price: $3.30 psf, $143,748 CBRE Asking Price: $5.00 psf, $217,800 CBRE Deal Range High: $4.50 psf, $196,020 CBRE Deal Range Low: $2.25 psf, $98,010 City Purchase Price: $2.44 psf, $106,286 Stone Brook Offer#1: $0 psf, $0 Staff Counter#1: $4.00 psf, $174,240 Stone Brook Offer#2: $2.50 psf, $108,900 EDA Counter#1: $3.50 psf, $152,460 Stone Brook Offer#3: $3.00 psf, $130,680 EDA Counter#2: $3.30 psf, $143,748 (B) Earnest Money: $7,500,non-refundable after Notice-to-Proceed. (C) Term: Inspection Period 08/01/2017. Closing 14 days after Notice-to-Proceed. Can extend for two 60-day terms via non-refundable $2,500 earnest money deposits (D) Construction Deadline: 09/01/2018, includes right-of-re-entry agreement clause/or fine. (E) Platting/Development Agreement: must obtain plat, development agreement, site plan, and approved visual renderings before closing on purchase. (F) Road Connection: if public 80:20 split, if private 50:50 split. The agreement allows for this item to be resolved after the PA is signed(provides for two options). The attached Site #1 Log discusses this item (see staff section). Public Road Connection: $285K estimate (see attached). The informal policy historically implemented in The COR for cost-sharing public roads is a 60-40 split(60%city). It should be noted,public roads are typically designed at a much higher level than private drives (width, load capacity, landscaping, utilities, etc.). Stone Brook is proposing that the 60/40 cost share be used on this public road project. Stone Brook has indicated that the 40% "developer"share should be split between Stone Brook and the other property that will have direct access of Sunwood Drive. Therefore, effectively, Stone Brook is proposing a 20%share of costs. This item will be resolved Private Road Connection: $150-$225K estimate (verbal). Staff has ordered a second WSB Feasibility Report for a private drive (pending). Funding Source: NA Recommendation: Staff is generally comfortable with the terms and conditions laid out in the attached purchase agreement. They appear to meet our land sale policies. Staff does not have a need to go into closed session for this case--as Stone Brook has agreed to the EDA's last counter offer. This project appears to have several benefits for the City, and The COR: (1) Generate trips to The COR,which will help drive retail interest--140 students, 100+trips in the AM, and 100+trips in the PM. Also, estimated 20 Stone Brook employees will patronize businesses in The COR. Stone Brook believes they are a destination user. (2) Provide a high-end facility,with good architecture, in The COR. Building will be pushed up against