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Economic Development Authority (EDA) Meeting Date: 01/10/2019 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Title: Consider Purchase Agreement for Lots 1, 2 and 3, Block 1, COR TWO; Case of RGH RAMSEY LLC (Portions may be closed to the public) 4. 1. Purpose/Background: RGH RAMSEY, LLC and City Staff have written the attached Term Sheet . RGH RAMSEY, LLC wishes to execute a purchase agreement according to the general terms and conditions outlined in the attached Term Sheet. The proposed purchase price is within the City's approved deal range for this parcel; however, it would require site plan approval compliant with COR zoning and vision. The proposed purchase agreement includes a development concept that will be available at the time of the EDA meeting for review. The developer has expressed the need to have time to secure tenants and has asked for a longer time periods and the ability for extensions to close to accomplish this. The time periods, and extensions outlined in the term sheet and PA are not in line with the standard template. The earnest money and extension language is also new but it allows the money to be non-refundable more quickly. The following items are worth highlighting: Earnest Money $10,000 Non-refundable Additional Earnest $30,000, Non-refundable after each extension is exercised Money (For Extensions) Inspection Period INITIAL PERIOD: January 22, 2019-June 15, 2019(city requires plat/ site plan approval before sale) Closing Within 30 days of notice to proceed. Can be extended six timesin one month increments. Extensions Developer will deposit $30,000 in escrow to be drawn down by City in $5,000 increments per month extended starting on June 15, 2019. Once City draws down each monthly $5,000.00 extension it becomes non-refundable. Performance City to require construction of Building 1 by Developer and a Certificate of Occupancy to be issued by June 15, 2020. If this is not done, the City may exercise the Right of Re -Entry. City to require Building 2 to be constructed and a Certificate of Occupancy to be issued by June 15, 2021. If this is not done, the City may require the developer to make penalty payment in the amount of$150,000(or as negotiated) to the City. (construction deadlines) The proposed site layout will be presented at the EDA meeting. Notification: N/A Observations/Alternatives: N/A Funding Source: