Agenda - Economic Development Authority - 06/08/2017

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Economic Development Authority (EDA) Meeting Date: 06/08/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 1. Title: Aeon Purchase Agreement: Multiple Actions Purpose/Background: INTRODUCTION The City approved a purchase agreement (PA) with Aeon, a Twin -Cities based workforce housing developer, in June of 2016 (attached). Said purchase agreement was split in two phases. The first phase is currently under official plat/ site plan review. The second phase, was described within the original PA, as an option to purchase (5 year option). Aeon has indicated, their several financing partners are requiring the two land transactions split into two separate PAs (rather than a two -phased single PA). Therefore, the nature of this case is administrative. Staff is attempting to meet Aeon's request. No major changes to the terms and conditions are occurring as a result of this request. The major change is simply the approach. Aeon has indicated they are still very interested in the phase two project, and still intend to bring a project forward next year. PURPOSE (1) Consider approval of the attached Second Amendment to the original Purchase Agreement between the City and Aeon. This amendment eliminates all language related to phase two. (2) Consider approval of the attached second Purchase Agreement with Aeon, for the second phase of their proposed development. This creates a stand alone PA for the second phase. BACKGROUND For background information on Aeon, workforce housing, or the previously approved case, please see attached. Also attached are concept site layouts and renderings for phase 1 and phase 2. Notification: Observations/Alternatives: NA Funding Source: NA Recommendation: Staff has no concerns with this request, as it is simply a change to approach, and administrative in nature. Action: Motion to recommend the City Council approve the attached: (1) Second Amendment to the original Purchase Agreement between the City and Aeon. (2) Second Purchase Agreement with Aeon, for the second phase of their proposed development.