Agenda - Council - 08/08/2023 - Laserfiche WebLink

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CC Regular Session Meeting Date: 7. 2. 08/08/2023 Primary Strategic Plan Initiative: {@!@udpd8@!@} Information Title: Adopt Resolution #23-173 Approving Purchase Agreement for Portion of Outlot A, COR TWO; Centra Homes - Parcel 46 Purpose/Background: The City Council may choose to go into closed session pursuant to Minnesota Statutes section 13D.05, subdivision 3(c)(3) to consider offers or counteroffers for the purchase or sale of real or personal property. If the City Council chooses to enter into closed session, the statute and reason above needs to be referenced along with legal description Outlot A, COR TWO and the Anoka County Tax ID number 28-32-25-22-0058. The purpose of this case is to consider entering into a Purchase Agreement with Centra Homes LLC to develop approximately 16 acres of Parcel 46 with 103 detached townhomes. A representative from Centra Homes will be present to answer questions relating to their development proposal. Staff worked with both Centra Homes and Capstone Homes over the past several months to bring proposals to the EDA and City Council for consideration. The EDA met on July 13, 2023 to review both proposals. It should be noted that both of the offers by Capstone and Centra were at the low end or below the deal range for Parcel 46. The City will also be spending additional funds for tree removal, grubbing, incidental wetland filling, soil importing and compaction on Parcel 46 to prepare it for development (- $1,145,800). Zeolite Street NW and W. Ramsey Parkway adjacent to the site will also need to be constructed to bring this project to market. (— $2,368,000) Based on the offers, it is clear that the purchase price alone will not cover the cost of these improvements. However, when you consider the purchase price and expected TIF generation for each project, the projected revenue exceeds the expenditures in most cases. Each project also generates over 1 Million in development fees. Both proposed projects will require a re -zone to a different residential zoning district. The Centra project met the COR Framework Design standards and would require a rezone to COR 4A or COR 4B. The Capstone project is not compliant with COR Framework design standards and the developer requested a rezone to R-2 which does not have the higher COR Framework standards. The addition of 103-130 new housing units will result in a significant population increase that helps draw interest in retail and restaurants. It should also be noted that both developers expressed an interest in developing the three acre commercial site on the Northeast corner of Sunwood Blvd and Armstrong Blvd residentially, but this was not included in the analysis based on the EDA and Council preference to see commercial development on that corner. The offers were very similar in net financial impact to the City. However, based on the fact that the Centra project was compliant with COR zoning and did not ask for a reduction in Park Dedication fees the EDA made a recommendation to work with Centra Homes on a Purchase Agreement and to present it to City Council for consideration. Notification: N/A Time Frame/Observations/Alternatives: