Agenda - Council - 09/26/2017 - Laserfiche WebLink

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Notification: Observations/Alternatives: PROJECT SPECS • Inland Group (http://inlandconstruction.com/) is a development company based out of Washington. • One of their subsidiaries is Affinity Living Communities (http://affinityforliving.com/). • Senior, independent, 55+ (not assisted living) • Estimated 150-200 units (may be adjusted) • Market rate, high amenity (not low income) • Anticipate a 4-5 story building • Anticipate 1st floor structured parking (100%) • Want roughly 1.3-1.5 parking stalls per unit (may be adjusted) • Not willing to use a shared parking ramp (non -starter item) • Opposed to any commercial/ retail (but, open to discuss if required by City) • Desire a spring 2018 construction • Roughly 4.2 acres • No assistance requested at this time (however, this project will likely trigger construction of public infrastructure, which will require city participation). PURCHASE AGREEMENT The attached purchase agreement was modeled after the City's template purchase agreement and policy for selling city owned land. Below is a summary of major deal points (often times called a term sheet). Attached is a clean version PA (current form) and a redline version. The redline version shows changes requested to the PA by the developerAFTER the EDA reviewed this case. (A) Purchase Price: $4.00 psf (4.2 acres = $731,808). This is the city's stated asking/ listing price. (B) Earnest Money: $25,000, non-refundable after Notice -to -Proceed (04/01/2018). (C) Term: Inspection Period ends (04/01/2018), Closing 30 days after, can extend 2x for 60 days at a cost of $10,000 each time. (D) Construction Deadline: Building permit 6-months after Closing and Certificate of Occupancy (CO) 30 months after Closing. Includes right of re-entry agreement clause. If project doesn't obtain building permit, city can take back property. If project doesn't obtain CO, city can impose $50,000 penalty. It should be noted, normally staff drafts this specific clause to leave discretion for the city to decide how to remedy in the event the developer defaults (i.e. the city chooses if they want to reclaim the property or impose a penalty). The developer has requested a change to this section --they are asking for it to specifically describe when reclaiming the land will be an option, and specifically when imposing the penalty will be an option (rather than leaving up to the City's discretion). Staff reviewed this request with the City Attorney. Staff is comfortable with the proposed change. Obtaining a building permit is a significant investment for the developer (greater than $500,000). The chances of the developer completing the entitlement process (several hundred thousand dollars), purchasing the property (nearly $700,000), and pulling a building permit (greater than $500,000), and then deciding not to complete the project is low. If the developer needed to exit the project, it is more likely they would default before they paid for the building permit fee (e.g. former quick -serve restaurant proposal in The COR). (E) Platting/ Development Agreement: must obtain plat, development agreement, site plan, and approved visual renderings before closing on purchase. (F) Road Connections: use the city's past practice model (60% city and 40% developer). Because the developer is only using one side of many roads, they would only pay 20% of said costs. This is consistent with several recent projects. At this point, the cost/ scope of road improvements required isn't known. Within this specific case write-up, staff is also requesting the city complete the attached preliminary feasibility report for infrastructure needed adjacent/ near this proposed project. This report will help the city understand the