Agenda - Economic Development Authority - 08/10/2023

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Tax Assessed Valution (Estimate) - 40M Annual Property Tax (Estimate) $495,000 Annual Local (City,School, County Estimate) $410,000 Annual Property Tax - City Portion (Estimate) $164,000 Aids Unit Density Calculations in COR - 50 units/acre Required a rezone to a COR 4b or 4c Subdistrict Key Purchase Agreement Terms Buyer - Norhart Architecture, LLC Seller - City of Ramsey Property Address - Northern corner of Sunwood Drive NW, Ramsey Parkway and Zeolite Street NW. Proposed Units - Approximately 200 PID# - 283225220058 Acres - Approximately 4 acres Purchase Price - $2.50/SF Road Development - $256,000 to be contributed to road extension costs of W Parkway (between Sunwood Drive NW roundabout and Zeolite Street) Earnest Money - Earnest Money of $25,000.00 will be held by Stewart Title upon full execution of Purchase Agreement. Said deposit would be refundable to Buyer in the event the escrow does not close, unless failure to close is the result of default by Buyer under the Purchase Agreement (in which event the deposit would be released to the Seller as liquidated damages). Additional Earnest Money events may occur upon discussion and agreement in Purchase Agreement. Inspection Period - Buyer shall have two -hundred forty (240) days following Effective Date to investigate property. Right of Re-entry - Within 24 months from the Closing Date Buyer shall have achieved completion of a ±200-unit Market Rate apartment building compliant with COR Zoning requirements to be further defined by an approved Site Plan. At Closing, a "Right of Re -Entry Agreement" shall be executed and recorded against the Property. The Seller agrees to waive the right to re-enter and take physical possession of the Property, providing that Buyer has submitted the building permit and associated fees, City development and platting fees, the building foundation has been set and evidence of sufficient financing for substantial completion of the project. Closing - Closing shall take place 30 days after Buyer delivers Notice to Proceed to Seller. Two (2) additional one hundred fifty (150) day extensions will be granted with each extension requiring a $15,000 earnest money deposit that is nonrefundable but applicable to the purchase price. Alternatives include: 1) Recommendation to the City Council Approval of Purchase Agreement and Right of Re -Entry Agreement (as presented); subject to City Attorney review. 2) Recommendation to the City Council Approval of Purchase Agreement and Right of Re -Entry Agreement (with changes); subject to City Attorney review. 3) Something else. Funding Source: N/A. There is no assistance being provided. Recommendation: City Council Approval of Purchase Agreement and Right of Re -Entry Agreement (as presented); subject to City Attorney review. Outcome/Action: