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CC Regular Session <br />Meeting Date: 04/24/2018 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />4. 4. <br />Information <br />Title: <br />Approve Aeon Purchase Agreement, Phase II, Amendment I <br />Purpose/Background: <br />PURPOSE <br />Consider approving an amendment extending the term of the attached purchase agreement (PA) with Aeon Ramsey <br />2 LLC by one year. <br />BACKGROUND <br />See attached original PA, original CBRE property listing, and Aeon project renderings. This city -owned property is <br />being sold/ developed in two phases by Aeon https://www.aeonmn.org/. They are developing the site into two <br />apartment buildings (54-units and about 45-units). The first phase closed in late 2017, and is under construction <br />now. The second phase is scheduled to close by October 13, 2018. <br />The developer would like to extend the closing date on the second phase of this project by one year (to October 13, <br />2019). The developer is willing to make the existing $10,000 of earnest money non-refundable, and add another <br />$10,000 of non-refundable earnest money for this extension. The developer is asking for this extension to allow <br />sufficient time to obtain financing. The developer is anticipating closing will occur sooner than October <br />2019--however, is attempting to plan ahead. <br />Notification: <br />Observations/Alternatives: <br />NA <br />Funding Source: <br />NA <br />Recommendation: <br />Staff is generally comfortable with this request because the developer is willing to make all existing earnest money <br />non-refundable and add new non-refundable earnest money. This type of arrangement is generally consistent with <br />past practice (on other city owned land transactions). The proposed project is consistent with the original deal <br />(attached PA). Financing for workforce housing is based on the timing of several other funding sources/ project <br />partners. The cycles to obtain financing from those other sources can take a year or more. <br />EDA Review: <br />The EDA reviewed this case on 04/12 and recommended 6-0 for the City Council to approve. Please see QCTV <br />video for details. <br />Action: <br />