Consider First Amendment to Purchase Agreement for Outlot B, COR Stone Brook Academy; Case of Stories Foundation
(Portions may be closed to the public)

The City of Ramsey and Stories Foundation entered into a purchase agreement on October 29, 2020 to purchase and develop Outlot B, COR Stone Brook Academy.   Stories Foundation has submitted applications for site plan and plat and have received preliminary approvals.  As noted in the original EDA case, Stories Foundation is a non-profit and relies heavily on fundraising for its operations and capital investment.  Stories Foundation recently notified the City that the bank they had been working with drastically changed their terms which has led to them seeking other financing options.  Based on the need to secure financing Stories Foundation is asking the City to consider a three month extension of the Purchase Agreement at a cost of $3,000.  The Developer proposes to pay $1000 per month starting on October 1st and concluding on December 1st 2021.  Staff supports this request and believes an EDA recommendation to Council to move forward with the First Amendment to Purchase Agreement is appropriate.

Notification is not required.

Observations:  The site is .52 acres in size with a purchase price of $67,953.60. ($3.00/SF) This price is within the approved "deal range".  The mixed use project will be developed by Stories Foundation.  The project will consist of a Cafe', retail store on the first floor with apartments and a patio on the second floor.  A copy of the preliminary site plan and elevations are attached to the Original Purchase Agreement.   The developer has requested a SAC and WAC Deferral loan and the City is in the process of completing the underwriting and will bring to the City Council later this month.  

The following modification are worth highlighting:
 

Closing	Closing date extended from September 30, 2021 to on or before December 31, 2021
Extensions	Developer will provide a $1,000 check on October 1, 2021, November 1, 2021, and December 1, 2021 as nonrefundable payment for the extension of the Closing date to on or before December 31, 2021
Legal Description	The legal description of the subject property in the Purchase Agreement is Outlot B, COR STONE BROOK ACADEMY subject to easements as shown on Plat), Anoka County, Minnesota. (the “Property”) and is being modified to add: to be platted as Lot 1, Block 1, STORYTELLER CAFÉ ADDITION.

Alternatives:

1. Recommendation to City Council to approve First Amendment to Purchase Agreement for Outlot B, COR Stone Brook Academy as presented; subject to City Attorney review (Staff recommendation)
2. Recommendation to City Council to approve First Amendment to Purchase Agreement for Outlot B, COR Stone Brook Academy with changes; subject to City Attorney review
3. Something else.

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

Staff recommends approval of the attached First Amendment to Purchase Agreement for Outlot B, COR Stone Brook Academy as presented, subject to City Attorney review.

Motion to recommend that the City Council approve the attached First Amendment to Purchase Agreement for Outlot B, COR Stone Brook Academy, subject to City Attorney review.