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7.7.
CC Regular Session
Meeting Date:
04/14/2015
Submitted For:
Patrick Brama
By:
Patrick Brama, Administrative Services

Information

Title

Approve 21 Day Extension to Casey's Purchase Agreement

Purpose/Background:

PURPOSE:
Approve 21 day extension to Casey's Purchase Agreement.

BACKGROUND:
The City entered into a Purchase Agreement (PA) with Casey's General Store (Casey's Retail Company) on June 30, 2014 for property located within The COR.  The proposed use was a gas station and convenience retail store.  Attached to this case is the approved site plan.  The PA was originally set to close on January 23, 2015.  Per the original PA, Casey's exercised their right to extend the PA to April 23, 2015 (notice is attached to case).

This project is nearly ready to close.  Final plat and site plan approval have been completed.  Casey's needs to complete a handful of administrative items before closing (record plats--which require City signatures, record easements, receive final comments from City staff regarding their landscaping plan, etc.).  Casey's expects to be ready to close by April 23.  However, after discussing timelines with City staff, they have opted to be "safe" and ask for a short extension to the PA to ensure closing occurs within the bounds of the PA.

 

Notification:

NA

Observations/Alternatives:

NA

Funding Source:

NA

Recommendation:

Staff agrees with Casey's--Staff is confident this project will likely close by April 23.  As mentioned in the Background Section of this case--nearly all required PA due diligence items have been fully completed.  Remaining items are administrative requirements.  However, if any delays occur between now and then, the original PA would terminate before an extension could be reviewed/ approved by the City Council (the next Council meeting is April 28).  As a result, Staff recommends a short PA extension be provided to Casey's to ensure, in the event of a small delay, this PA doesn't terminate (in other words--Staff would like to "to play it safe").

In the event Casey's asks for another PA extension--staff will recommend the City be compensated with extra earnest dollars.  Staff has not requested extra earnest dollars for this specific PA extension because this measure is meant to be precautionary--and has been requested by Staff as much as Casey's (Casey's intends for this agreement to close on time).

Generally speaking, Staff is very confident in this project, the prospect, and the current status of this project.  Staff has no reason to believe this PA will not close between April 23 and May 14.

Action:

Motion to:
Approve the attached purchase agreement extension with Casey's Retail Company.

Attachments

Form Review

Inbox Reviewed By Date
Kurt Ulrich Kurt Ulrich 04/09/2015 04:25 PM
Form Started By:
Patrick Brama
Started On:
04/09/2015 02:14 PM
Final Approval Date:
04/09/2015