Agenda - Economic Development Authority - 01/14/2021

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Economic Development Authority (EDA) Meeting Date: 01/14/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 1. Title: Consider Second Amendment to Purchase Agreement with Gigi's Salon and Spa, Inc. (Portions of case may be closed to the public) Purpose/Background: Purpose: Gigi's Salon and Spa has requested the City extend the Closing Date from 1/31/21 to April 30, 2021 due to the Covid-19 Pandemic and its impact on the operations of Salons and Spas and the timing of its Site Plan submittal. Background: The Covid-19 Pandemic has impacted retail and service businesses greatly. Many of these businesses have been closed completely or have been able to operate on a very limited basis. GiGi's has been able to operate on a limited basis and business has been good. Gigi's has given a "Notice to Proceed" and has provided $7,000 in non refundable earnest money. Gigi's is still working on its site plan and plans to submit a complete application for the February 2021 Planning Commission meeting. The timing of this submittal will not align with the terms of the PA and receipt of Site Plan approval. This project is slated for a Spring construction start and the April 30, 2021 deadline extension would allow for a smooth development process. Staff believes the request to extend the Closing Date through a Second Amendment to Purchase Agreement to reasonable based on the project timelines proposed. As part of the closing a Right of Re -Entry Agreement will need to be executed and filed on the real estate. Staff has also provided this draft agreement for consideration Notification: N/A Observations/Alternatives: Staff has drafted the attached Second Amendment to Purchase Agreement. The only change from the Original Purchase Agreement and First Amendment to Purchase Agreement is to change the Closing Date from January 31, 2021 to April 30, 2021. Staff is not recommending the collection of "additional non-refundable earnest money" as part of this amendment. Alternative include: 1. Recommendation to City Council to approve the Second Amendment to Purchase Agreement and Right -of Re -Entry Agreement (as presented) 2. Recommendation to City Council to approve the Second Amendment to Purchase Agreement and Right of Re -Entry Agreement (with amendments) 3. Something else Funding Source: This action is being covered under Staff duties. Recommendation: