Agenda - Economic Development Authority - 08/09/2018

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Chairperson Steffen asked if the right of re-entry is a standard condition. City Administrator Ulrich stated that typically that element is included. He confirmed that the modification could be made to the agreement. Chairperson Steffen commented that this will be a great use of the land and a great business to add to the community. Motion by Member Riley, seconded by Member Hardin, to recommend to City Council to approve the purchase agreement with PDKP Properties, LLC for roughly 1.23 acres of City owned land, contingent upon the applicant receiving financing and with the added condition that a right of re-entry agreement be added. Further discussion: Chairperson Steffen asked if direction should be given to look into whether the broker was the agent for both the buyer and seller. It was confirmed that staff should follow up to determine that appropriate commission is paid. Motion carried. Voting Yes: Chairperson Steffen, Members Riley, Hardin, Burandt, Kanaventi, Lambrecht, and . Voting No: None. Absent: None. 4.02: Consider Amendment to Purchase Agreement for Harvest Estates; Case of GS Land, LLC (Portions may be closed to the public) Community Development Director Gladhill presented the staff report. Darrell Gamar, GS Land, LLC, stated that NIC Construction needed financing for the project and GS Land started as the finance company for the project and eventually took over the development. He confirmed that they saw the original purchase agreement. He stated that absorption of the development was slow for the first two years and the absorption has been much better in 2018. He believed that the market is currently between $70,000 to $80,000 for lot sales. He stated that they would like to continue with the project and they attempted to be fair in the counteroffer. He stated that had the project been available to do all at once it would have been possible to move dirt from phase one to phase two but given that option was not available that did impact the costs for phase two. Member Hardin asked if there will be a pond in that area. Community Development Director Gladhill stated that the ponding has already been created to support the project, there is no other need to excavate additional ponding, and therefore fill will need to be imported. Chairperson Steffen asked when the developer became aware of the need for the fill. Mr. Gamar replied that they knew that there would be some fill needed but they were not fully aware of the scale until the engineer reviewed the plans in the second half of 2017. Economic Development Authority/July 12, 2018 Page 3 of 6