Agenda - Economic Development Authority - 10/13/2022

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Economic Development Authority(EDA) 4.2. Meeting Date: 10/13/2022 By: Sean Sullivan, Community Development Title: Consider Cancellation of Purchase Agreement for Parcel 50; Case of Java Companies, L.L.C. Purpose/Background: Purpose: The purpose of this case is to consider cancellation of the Purchase Agreement with Java Companies, LLC to reduce the amount of land purchased and to better define terms of the future development agreement. Background: The City entered into a Purchase Agreement with Java Properties, LLC on December 15, 2021 to purchase and develop approximately 7 acres located South of Casey's General Store and O'Reilly Auto Parts. The City Council approved extending the Inspection Period from June 15, 2022 to December 15, 2022 to give the City and Developer more time to define projects costs and project timing. The Developer has met with prospective tenants and they are not comfortable moving forward with development until the new interchange at Ramsey Boulevard and Highway 10 is complete, or is under construction. As such,the Developer has asked the City to enter into a cancellation agreement. A Notice to Proceed has not been given by the Developer so the $15,000 in Earnest Money would be refunded. The Inspection Period has not ended, so the request for the cancellation of the purchase agreement and the refunding of the Earnest Money is within the terms of the Purchase Agreement. The Developer has interest in re-engaging with the City closer to the time of completion of the improvements on Ramsey Boulevard and Highway 10. Staff is supportive of this cancellation agreement. Notification: N/A Observations/Alternatives: A draft Cancellation Agreement is attached and has been reviewed by the City Attorney as to form. The Developer has executed the Cancellation Agreement. Construction of the turn lane for the future Veterans Drive access to Ramsey Boulevard will be constructed as part of the Ramsey Boulevard/Interchange improvements. Completion of these improvements will increase the marketability of this parcel for development in the future. Alternatives include: 1) Recommendation to City Council to approve Cancellation Agreement for Parcel 50 with Java Companies, L.L.C. (as presented); subject to City Attorney Review. 2) Recommendation to City Council to approve Cancellation Agreement for Parcel 50 with Java Companies, L.L.C. (with changes); subject to City Attorney Review. 3) Something else. Funding Source: N/A Recommendation: Staff recommendation for EDA recommend to City Council to approve Cancellation Agreement for Parcel 50 with Java Companies, L.L.C. (as presented); subject to City Attorney Review.