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Economic Development Authority (EDA) Meeting Date: 01/11/2018 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Title: - Centra Homes Purchase Agreement [portions of case may be closed to the public] 4. 1. Purpose/Background: PURPOSE Consider the attached purchase agreement for Centra Homes to purchase roughly 4.29 acres of city -owned land located in The COR for a single family detached housing development. The structure of this Purchase Agreement is a little unique, in that it contemplates three layouts, with three different lot counts (33, 35, 36), with three different offer prices ($295,000, $315,000, $330,000). The developer has indicated the asking price is based on a mixture of the number of sellable lots versus required infrastructure. Staff anticipates, through the future entitlement process, a layout will be selected, and this purchase agreement will be amended to formalize the final sale price. BACKGROUND Please see attached cover letter. Please see company website. Centra Homes is in good standing with the State of Minnesota business filing search system. Staff has not worked with Centra Homes on a project in Ramsey. However, staff has been working with Centra Homes for the past few months, as they have contemplated several sites in Ramsey. Notification: NA Observations/Alternatives: This purchase agreement was developed based on the city's template purchase agreement and policy for selling city owned land. The City Attorney has reviewed the attached purchase agreement. Below are major deal terms. • Lot Size: roughly 4.29 acres • Price: offer price (295K to 315K), asking price $350,000 • Earnest Money: $10,000 • Inspection Period: 07/01/2018* (closing within 30 days) • Extension Period: two 30 day options at $5,000 each. • Construction Deadline: 5 COs annually, starting in 2019, $5,000 penalty per missed CO • Exhibits: show the proposed layouts *Council won't review this case until mid -February, the inspection period is proposed to be about 4.5 months. Funding Source: NA Recommendation: Staff is generally comfortable with the proposed purchase agreement. Staff would welcome direction from the EDA on any deal terms (i.e. price). It's possible to provide staff general direction on this item without going into closed session.