Agenda - Council - 04/25/2017 - Laserfiche WebLink

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CC Regular Session 4. 5. Meeting Date: 04/25/2017 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Information Title Approve Second Amendment to GS Land Purchase Agreement to Extend Closing Deadline Purpose/Background: Approve the attached second amendment to the existing purchase agreement(PA)between the City of Ramsey and GS Land. In summary,this amendment extends the existing PA by twelve (12)months (from August 01,2017 to August 01, 2018). This Amendment formalizes two items: (1)it establishes a new GS Land $20,000 escrow/earnest money, and (2) $5,000 of the new GS Land earnest money becomes immediately non-refundable. GS Land is making this request to afford more time for their existing lots (in Phase 1)to be absorbed by the market. At this point,they are planning on being ready to close on the Phase 2 PA on or before August 01, 2018. The Council reviewed this request originally in February of 2016, at which time it was brought forward in conjunction to the Development Agreement associated with this project. At the time,the Council adopted a formal resolution(16-02-042) supporting the 1-year extension request.With that in mind, GS Land didn't need to "act" on that request/approval until now--the City is now supplying GS Land with the notice of completion--for the demolition project--which means they now need to decide how to proceed (they can no longer wait). This type of request is not uncommon for the City to process. Staff is relying on past practice (informal policy) of requiring that existing earnest money becomes non-refundable,and new earnest money be placed down, and also becomes non-refundable. Notification: NA Observations/Alternatives: NA Funding Source: NA Recommendation: NA Action: Motion to: Approve the attached Second Amendment to the Purchase Agreement between the City of Ramsey and GS Land LLC; subject to final review and amendment by the City Attorney.