Agenda - Economic Development Authority - 09/14/2017

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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://affinitvforliving.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 • Need 3-5 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). It should be noted, staff is still working out some final details with the developer. This case may be updated on 09/13. (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 2 years after Closing. Includes right of re-entry agreement. (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 scope of improvements needed and the associated estimated costs. Funding Source: NA Recommendation: • Staff believes the proposed project meets the general direction provided by the EDA, PC and Council in September --in terms of site location and proposed use. • Staff believes the attached PA is generally consistent with city's polices for selling city owned land and is comfortable with the asking price. Staff is not requesting to go into closed session. • Staff would note: that city staff (and attorney) are still finalizing some details in the PA with the developer. The attached PA may be updated before the EDA meeting. It is possible that staff and the developer don't come to an agreement on a few remaining items --in which case, staff will make notification at the EDA meeting. • Lastly, staff would recommend completing the attached Bolton & Menk work order (concept level feasibility report for nearby infrastructure). This work will keep the project moving forward, and give both parties a