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Economic Development Authority (EDA) <br />Meeting Date: 07/13/2017 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />4. 4. <br />Title: <br />Riverstone Development Purchase Agreement [portions may be closed to the public] <br />Purpose/Background: <br />PURPOSE <br />The purpose of this case is to consider approving the attached purchase agreement with Capstone Homes <br />(Riverstone Development). <br />BACKGROUND <br />This purchase agreement comes to the city as a result of the proposed 298-unit Riverstone Development which <br />received preliminary plat approval by the City in June (final plat approval expected on July 25). Please see attached <br />preliminary plat. A portion of this development requires the realignment of Puma street, and subsequently, the <br />purchase of city -owned land by Riverstone. <br />Notification: <br />Observations/Alternatives: <br />OBSERVATIONS <br />Listed below are terms/ conditions/ observations related to the attached purchase agreement that staff considers <br />important to highlight for potential discussion. <br />(1) Policy Compliance <br />Staff has no policy compliance concerns. <br />This project is not requesting a formal business subsidy, the City's Revolving Loan Fund, or State DEED <br />Programs. The attached PA is simply an edited version of the City's adopted "template PA." Therefore, <br />generally appears to be in compliance with City's Land Sale Policies. <br />(2) Offer Price <br />$25,000 per acre 47 cents psf ($47,500 estimated total). <br />The buyer is making an offer that is at the low end of the City's standard deal range for green field residential <br />land ($25,000 to $35,000 per acre). However, it is within the City's acceptable/ adopted deal range. If desired, <br />this item should be discussed in closed session. <br />It should be noted, Capstone Homes (Riverstone Development) is buying property from Pearson Properties at <br />an average rate of $25,000 per acre. Also, this property is not currently served by sewer/ water. This is the <br />rationalization for the proposed purchase price (i.e. 95% of the remaining development is being purchased at <br />this price). <br />(3) Earnest Money <br />$5,000, to become hard after inspection period. <br />(4) Inspection Period <br />February 08, 2018 (July 15, 2018). <br />(5) Extension Option <br />