Agenda - Economic Development Authority - 07/11/2019

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Economic Development Authority (EDA) 4. 2. Meeting Date: 07/11/2019 By: Sean Sullivan, Community Development Title: Consider Approving Amended Right of Re -Entry Agreement for Cottages at the COR: Case of Centra North Purpose/Background: As the EDA may recall, the City sold a piece of real property at the southwest intersection of Ramsey Boulevard and Bunker Lake Boulevard for the Cottages at The COR development. Included in that transaction was the City's typical Right of Re -Entry Agreement, allowing the City to take back the property in the event development did not commence. The City is interested in selling to Developers with immediate plans for development and not on real estate speculation. Centra Homes North has requested the Certificate of Occupancy date for the first five homes be extended from October 1, 2019 to December 31, 2019. Centra Homes has provided a written request to amend the agreement which is included in this case. The property transaction closed on November 28, 2018. Site grading was delayed and the cold weather and snow set in before utilities could be installed this winter. Due to these items, construction started late and Centra North is asking for an 3 month extension. Notification: Notification is not required. Observations/Alternatives: An Amended Right of Re -Entry Agreement has been drafted reflecting the change to the Certificate of Occupancy date for the first five homes extending it to December 31, 2019. The terms and conditions of the rest of the agreement and subsequent years remain the same. The City Attorney has reviewed the attached agreement. The EDA can consider the following actions: 1) Approve the proposed Amendment to the Right of Re-entry Agreement and recommend approval to the City Council 2) Deny the proposed Amendment to the Right of Re -Entry Agreement and recommend denial to the City Council 3) Propose another alternative. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: Staff recommends approval of the proposed Amended Right of Re-entry Agreement, subject to City Attorney review and approval. Action: Motion to recommend that the City Council approve the proposed Amended Right of Re-entry Agreement, subject to City Attorney review as to legal form.