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CC Regular Session Meeting Date: 07/25/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Information Title: Riverstone Development Purchase Agreement [portions may be closed to the public] Purpose/Background: PURPOSE The purpose of this case is to consider approving the attached purchase agreement with Capstone Homes (Riverstone Development). 7. 5. BACKGROUND This purchase agreement comes to the city as a result of the proposed 298-unit Riverstone Development which received preliminary plat approval by the City in June (final plat approval expected on July 25). Please see attached preliminary plat. A portion of this development requires the realignment of Puma street, and subsequently, the purchase of city -owned land by Riverstone. Notification: Observations/Alternatives: OBSERVATIONS Listed below are terms/ conditions/ observations related to the attached purchase agreement that staff considers important to highlight for potential discussion. (1) Policy Compliance Staff has no policy compliance concerns. This project is not requesting a formal business subsidy, the City's Revolving Loan Fund, or State DEED Programs. The attached PA is simply an edited version of the City's adopted "template PA." Therefore, generally appears to be in compliance with City's Land Sale Policies. (2) Offer Price $25,000 per acre 47 cents psf ($47,500 estimated total). The buyer is making an offer that is at the low end of the City's standard deal range for green field residential land. However, it is within the City's acceptable/ adopted deal range. If desired, this item should be discussed in closed session. It should be noted, Capstone Homes (Riverstone Development) believes $25,000 per acre is the market rate for residential land --this is their direct experience in the nearby marketplace (with other recent purchase agreements). Also, this property is not currently served by sewer/ water, and will be responsible for future arterial infrastructure assessments. This is the rationalization for the proposed purchase price. (3) Earnest Money $5,000, to become hard after inspection period. (4) Inspection Period February 08, 2018 (July 15, 2018 closing). This is consistent with the PA in place with Pearson Properties for the north half of this project.