Agenda - Economic Development Authority - 08/10/2017

Home

was being purchased upfront purely on speculation. This new arrangement does add in a construction deadline for the outlot (purchase agreement B). Said new purchase agreement requires the construction of a minimum 20,000 square foot building and also requires a letter of credit guarantying said development. Platting and site plan must occur before closing. Certificate of occupancy must be obtained by July 01, 2019. Inspection period ends for the second purchase agreement (B) on October 01, 2018. Funding Source: NA Recommendation: Staff is comfortable with the proposed arrangement. Please see 06/13/2017 City Council Case for previous detailed recommendations/ comments (including EDA direction). Although the original purchase agreement (A) was approved in June, the EDA did express concern about the second half of the project not including any construction deadlines/ performance guarantees from the developer (i.e. it was purely speculative). Staff believes said EDA concern is addressed with this new arrangement, as the new purchase agreement (B), which covers the second half of the development, does include construction deadlines/ performance guarantees. Staff is not requesting to go into closed session. The price of this purchase agreement has not changed from the original discussion/ approval ($1.50 per square foot). Action: Motion to recommend the City Council approve the attached: Purchase agreement amendment and second purchase agreement, between the City of Ramsey and Maple Investments LLC; subject to final review and amendments by the City Attorney. Original PA (A) Original PA (A) First Amendment New PA (B) Site Concept and Renderings Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Katie Schmidt 08/04/2017 04:14 PM Form Started By: Patrick Brama Started On: 08/04/2017 03:15 PM Final Approval Date: 08/04/2017