Agenda - Economic Development Authority - 07/11/2019

Home

Economic Development Authority (EDA) 4. 1. Meeting Date: 07/11/2019 By: Sean Sullivan, Community Development Title: Consider Approving First Amendment to Purchase Agreement for Lots 1, 2 and 3, Block 1, COR TWO; Case of RGH RAMSEY LLC (Portions may be closed to the public) Purpose/Background: RGH RAMSEY, LLC made an offer on three City -owned parcels at the southwest intersection of Armstrong Boulevard and Sunwood Drive NW and has executed the attached purchase agreement dated February 12, 2019. RGH RAMSEY, LLC has requested to amend the purchase agreement according to the general terms and conditions outlined in the attached redlined 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 conceptual development concept for review. The developer has expressed the need to have more time to secure tenants and has asked for a longer time period to close. In return, the Developer has agreed to make the entire $30,000 Additional Earnest Money immediately non-refundable. Notification: Notification is not required. Observations/Alternatives: Proposed Amendments to Purchase Agreement Terms: • Extend the final Closing Date from February 15, 2020 to June 15, 2020 (120 days) • Upon Notice to Proceed or execution of the First Amendment to Purchase Agreement, the Additional Earnest Money of $30,000 becomes non-refundable. Currently, the Developer has the ability to extend the Closing Date 6 times for the cost of $5,000 each. • Extend the requirement for a Certificate of Occupancy on Building 1 from July 15, 2020 to November 15, 2020. Site Plan: This site plan has not yet gone through site plan review and shall not be considered as any indication of compliance with Zoning Code. This is being shown for illustrative purposes only. Official site plan review might result in required amendments to the attached site plan. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: Staff recommends approval of the First Amendment to Purchase Agreement, which also provides flexibility in the final determination of the site layout; subject to City Attorney approval. Action: Motion to recommend approval of the First Amendment to Purchase Agreement the the City Council, which also provides flexibility in the final determination of the site layout; subject to City Attorney approval.