Agenda - Economic Development Authority - 11/12/2020

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Economic Development Authority (EDA) Meeting Date: 11/12/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 1. Title: Consider Approval of Third 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: Purpose: The purpose of this case is to consider a request by the Buyer to extend the Closing Date and Certificate(s) of Occupancy dates due to the Covid-19 Pandemic and it impact of the commercial/retail sector. Background: RGH RAMSEY, LLC the the City of Ramsey have entered into a Purchase Agreement and a First Amendment to Purchase Agreement and Second Amendment to Purchase Agreement to acquire and Develop Lots 1, 2 and 3, Block 1, COR TWO. 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 Buyer has been marketing the property to many end users and has developed a revised site concept plan. Due to the Covid-19 Pandemic, the proposed convenience store user has put a hold on all new projects in Ramsey. The request by the Buyer is to allow for more time to negotiate a deal with the first end user and to close once a LOI is received. To date the City has received $40,000 in Non-refundable Earnest Money and has approved a Conditional Use permit for a 75 foot sign on the Development site. It is standard process to have the Planning Commission weigh in on any concept that is associated with a City Purchase Agreement. With that in mind, the revised PA should also be routed to the Planning Commission prior to final action by the City Council. The deadlines in the current PA will allow sufficient time to accomplish this. The Buyer has not provided any "up -front" additional Earnest Money. Notification: Notification is not required. Observations/Alternatives: Proposed Amendments to Purchase Agreement Terms: • Extend the final Closing Date from January 15, 2021 to July 15, 2021 (6 months) • Extend Certificate of Occupancy Date for Building 1 from July 15, 2021 to January 15, 2022 (6 months) • Extend Certificate of Occupancy Date for Building 2 from February 15, 2022 to August 15, 2022 (6 months) • There is no "up -front" Additional Earnest money being provided as part of this request for Extension • Buyer is offering to provide $5,000 in Non-refundable Earnest Money on a monthly basis (up to 6 months, or $30,000) to extend the Building 2, February 15, 2022 certificate of occupancy date. 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. The draft PA will be reviewed by the Planning Commission in terms of concept plan layout prior to action by the City Council. Funding Source: