Agenda - Economic Development Authority - 06/10/2021

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Economic Development Authority (EDA) Meeting Date: 06/10/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 2. Title: Consider Approval of Fourth 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 one year due to the Covid-19 Pandemic and its impact of the commercial/retail sector. Background: RGH RAMSEY, LLC and the City of Ramsey have entered into a Purchase Agreement, First Amendment to Purchase Agreement, Second Amendment to Purchase Agreement and Third 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 come back multiple times to ask for extension to the Purchase Agreement to give more time to bring a project to the market. The Buyer has been marketing the property to many end users and continues to look a new site concept plans. Due to the Covid-19 Pandemic, lack of visibility from Highway 10, and the slow recovery for the restaurant and retail market sectors, it has been difficult to recruit projects to Ramsey. To date, the City has received $40,000 in Non-refundable Earnest Money from the Buyer and has approved a Conditional Use permit for a 75 foot sign on the Development site. In addition, the City is beginning work to bring a dynamic display billboard to Highway 10 to assist in marketing for existing and future Ramsey business. These items should help with business development. The Developer is asking for more time and is willing to pay $10,000 in additional non-refundable Earnest Money. Notification: Notification is not required. Observations/Alternatives: Observations: Key terms to the Fourth Amendment to Purchase Agreement are below: Proposed Changes to Purchase Agreement Terms: • $10,000 in non refundable additional Earnest Money upon execution this the Fourth Amendment to Purchase Agreement • The Closing Date is extended from July 15, 2021 to July 15, 2022. • The certificate(s) of occupancy dates are extended for construction of Building 1 to January 15, 2023 and for construction of Building 2 to August 15, 2023. The penalty provision of $150,000 remains in place if Building 2 is not constructed according to the terms and conditions set forth in the original Purchase Agreement. • The following term is removed from the Purchase Agreement: "The required certificate of occupancy date for the construction of Building 2 can be extended in one month increments with provision of $5,000 in Non-refundable Earnest Money for each additional month beyond August 15, 2022, up to 6 months, or