Adopt Resolution #19-277 Approving Purchase Agreement for Part of Outlot A, COR Stone Brook Academy; Case of GiGi's Salon and Spa, Inc. (Portions may be closed to the public)

The City of Ramsey and GiGi's Salon have been negotiating the terms of a purchase agreement over the past two months. Gigi's Salon has agreed to the attached purchase agreement according to the general terms and conditions outlined on the attached Term Sheet.  The proposed purchase price is within the City's approved deal range for this parcel; however, it still will require site plan approval through the normal zoning process. 

The proposed purchase agreement includes a development concept previously reviewed by the EDA and Planning Commission. The lot configuration as currently presented allows leaves over 1.5 acres for a future project. The time periods, and extensions outlined in the term sheet and PA are consistent with the standard template.  

Notification is not required.

The following items are worth highlighting:
 

Earnest Money	$5,000, Nonrefundable after a Notice to Proceed has been given by the Buyer.
Inspection Period	180 days from Effective Date (Date City Council Approves) (city requires plat/ site plan approval before sale).
Closing	Within 30 days of Notice to Proceed.
Extensions	Developer will deposit $1,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.
Performance	City to require construction of a minimum 5,000 SF building and obtain a Certificate of Occupancy one year after Closing.  If this is not done, the City may exercise the Right of Re-Entry.

This case is being handled as part of normal Staff duties.

The EDA reviewed the attached purchase agreement at its November 14, 2019 meeting and unanimously recommended City Council approval.
 

Motion to adopt Resolution #19-277 Approving Purchase Agreement for Part of Outlot A, COR Stone Brook Academy; subject to City Attorney approval.