Laserfiche WebLink
Economic Development Authority (EDA) <br />Meeting Date: 11/09/2017 <br />By: Patrick Brama, Administrative Services <br />Title: <br />Preliminary Deal Structure: Case of Paxmar <br />4. 2. <br />Purpose/Background: <br />PURPOSE <br />Consider preliminary deal structure for the purchase of roughly 2.9-acres of city -owned land by Paxmar for a <br />residential development project. The purpose of this case is not to provide formal direction. A formal purchase <br />agreement will be brought back to the EDA in December. <br />BACKGROUND <br />Paxmar is a twin cities based residential development company. They are currently working on two separate 100+ <br />unit single-family residential projects located near Puma Street and Alpine Drive (two different parcels, two <br />different existing property owners, two different product types). One of their projects requires the purchase of a <br />small remnant city -owned property . This property is known as the "former Legacy Christian Academy park <br />dedication property" (CBRE Listing 13). This property is roughly 4-acres in size. However, Puma Street is being <br />realigned through this city -owned property (CBRE Listing 13). As a result, a portion of the property is being sold to <br />Capstone Homes (west side, 1.1 acres), and a portion is being sold to Paxmar (east side, 2.89 acres). The City has <br />already approved the Capstone Purchase Agreement at $25,000 per acre. The Paxmar purchase agreement will be <br />nearly identical to the Capstone Purchase Agreement. <br />Notification: <br />NA <br />Observations/Alternatives: <br />Summary of Major Deal Terms <br />(1) $25,000 per acre. Final size to be determined via plat. <br />(2) $5,000 of earnest money. <br />(3) Inspection Period, March 1, 2018. <br />(4) Closing, May, 2018. <br />(5) Two extensions allowed ($2,500 each of additional earnest money). <br />(6) Land proceeds will be deposited into the Parks Trust Fund (per previous policy direction) <br />Funding Source: <br />NA <br />Recommendation: <br />Staff is looking for any preliminary direction, input, questions, etc. No formal direction requested. This case will <br />come back as a formal purchase agreement in December. <br />Action: <br />Staff is looking for any preliminary direction, input, questions, etc. No formal direction requested. This case will <br />come back as a formal purchase agreement in December. <br />