Consider Offer to Purchase Land - North Commons (portions may be closed to the public)

Over the last 18 months, the development team has worked with a number of regional home builders to structure a development deal that can facilitate the construction of single family homes in the North Commons area.  As you are aware, the HRA currently owns three parcels of land in this area of the project:

The Park - an 8.5 acre property in the center of North Commons that has been, in previous plans, designated as a predominantly passive recreational park.

The Triangle parcel - a 4.3 acre parcel in the NW quadrant of Bunker and Zeolite previously planned as town homes, but currently contemplated to be developed as single family homes.

The Horseshoe parcel - a narrow 3.0 acre parcel north of Bunker and between Zeolite and what was called Town Center Drive.  This piece was planned and platted by the original developer as a town home development, and cannot support single family development.

HRA Members will be provided additional detail on the proposed offer prior to the meeting.

Discussions at previous HRA meetings have provided direction in a number of areas, but when last discussed the development team was to proceed with marketing the triangle parcel, and if necessary, consider 'some number' of homes on the west side of the park parcel to make the development more attractive to a home builder.

During discussion at the June 5th, 2012 HRA Special Meeting, the issue of exclusivity was discussed, and the proposed offer has been revised to address those HRA comments.

The current concept plan, attached to this case, contemplates thirteen home sites on the triangle parcel, and four on the park parcel.

A local home builder has come forward with an offer, and deposited $10,000 earnest money to secure the development rights for the seventeen sites on the triangle and park parcels.

The development team has prepared a concept design including site plans, grading, and utility improvements necessary to develop these lots.  The development team has also prepared a development pro-forma and derived a proposed structure and schedule to proceed with this proposal.  If directed to proceed, the development team would prepare necessary plans to make application for approval, and present the final proposal for HRA consideration at a future meeting.

If approved, the Preliminary and Final plats would be prepared and proceed on the following schedule:

COR THREE Schedule:

• Week (early) of June 4 – Landform will submit Pre-Plat and Final Plat for review
• HRA Approval of Plat configuration – June 5
• Public Hearing Notification Due for Pre-Plat – June 6
• Sketch Plan at Planning Commission – June 7
• Pre-Plat Case due – June 13
• Pre-Plat (PC) – June 21
• Final Plat Case due – July 5
• Pre-Plat/Final Plat (CC) – July 10

This schedule would contemplate the lots being available to close in mid July with immediate construction and potentially open for Fall Parade of Homes tour.

The development team recommends the HRA consider and approve an acceptable deal structure as discussed,  and direct the team to prepare a final purchase agreement for execution.

If the proposed deal structure is acceptable, the development team recommends the HRA accept the proposal by Landform to prepare construction documents for the grading and utility improvements necessary to prepare the property for sale.

With the previous approval of the Platting for COR THREE, Landform has commenced the preparation of the preliminary and final platting necessary to meet the above schedule

The initial cash flow for the project would be provided by immediate land sales,  earnest monies, and by the Landfill Trust Fund  .  The Landfill Trust Fund would be reimbursed by future land sales

Approve a proposed purchase agreement for seventeen lots in the North Commons area.

Approve the proposal from Landform to prepare plans for the improvements necessary to sell the proposed lots.