Agenda - Council - 12/10/2019 - Laserfiche WebLink

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On April 18, 2019, AEON sent an email requesting that the City of Ramsey consider another extension/amendment to the Purchase Agreement First Amendment to move the Closing date out to to accommodate for the Minnesota Housing Application process. AEON submitted a grant application to the Minnesota Housing Finance Agency. The Minnesota Housing application required that the purchase agreement extend past the award date which is November 21, 2019. AEON requested the extension/amendment to move the Closing date to on or before January 13, 2020 to include an additional $10,000 in non-refundable earnest money. The City granted that extension of Closing Date to January 13, 2020 including the deposit of the additional $10,000 in Non-refundable Earnest Money in the Purchase Agreement Second Amendment. AEON Ramsey 2, LLC did not receive an award from Minnesota Housing for the 2019 application cycle which is prompting the request for the extension for more time to work out a solution. To date, the City has received $30,000 in non-refundable earnest money from AEON Ramsey 2 LLC from the original purchase agreement, first amendment and second amendment. The City Council is being asked to review the general terms of the proposed Third Amendment. Notification: Notification is not required. Observations/Alternatives: Due to timing of this request the EDA has not had time to review this item at a formal board meeting. In order to fully evaluate the request and to potentially amend the Purchase Agreement Staff believes that extending the Closing Date to February 28, 2020 would be prudent. The only change being requested is an extension fof the Closing Date from January 13, 2020 to February 28, 2020 to give the City and AEON time to renegotiate the terms of the Purchase Agreement. AEON would not be able to fully perform the requirement to obtain government approvals (site plan and plat) within this timeframe, so additional negotiations would be required. Items that should be considered if the PA is renegotiated include, but are not limited to: • Purchase Price • Project Definition (Concept) • Project Timing • Additional Earnest Money Alternatives: 1. Adopt resolution approving Purchase Agreement Third Amendment (extend to require additional negotiation in January/February 2020) 2. Adopt resolution approving Purchase Agreement Third Amendment with changes (based on discussion) 3. No Action - Purchase Agreement would expire and project would not move forward Funding Source: This item would be covered under normal staff duties. Recommendation: Staff recommends extending the Closing Date to February 28, 2020 to allow time to renegotiate the Purchase Agreement. Action: Motion to adopt/deny Resolution # 19-299 Approving Purchase Agreement Third Amendment for AEON Ramsey 2, LLC requiring additional negotiations in January/February 2020. Attachments