7.5.
CC Regular Session
- Meeting Date:
- 04/28/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Consider Amendment to Purchase Agreement By and Between the City of Ramsey and CommonBond Communities for Outlot A, COR ONE; Case of CommonBond Communities.
Purpose/Background:
The City entered into a Purchase Agreement (PA) with Common Bond Communities May 20, 2014 for property located within The COR, just northwest of the Ramsey Rail Station. The proposed use was a 47 unit workforce apartment complex. Attached to this case is the approved site plan. The PA was originally set to close on or before May 01, 2015. Per the original PA, Common Bond exercised their right to extend the PA to July, 2015.
This project continues to make progress. The project has been recommended for approval by the Planning Commission and will tentatively be considered for approval by the City Council on May 12. Moving forward, CommonBond needs to complete a handful of administrative items before closing. More importantly, CommonBond would like to re-bid the project. It's Staff's understanding the project was recently bid; and the results were unfavorable and unexpected for CommonBond (some areas of the project came in over 25% higher than expected). Additionally, CommonBond is attempting to address unexpected costs associated with soil remediation needs on the site. Finally, CommonBond has agreed to schedule the Subdivision and Site Plan Review for May 12 to allow time to revise the site plan to account for the Planning Commission recommendation and Staff Review Letter. As as result of the items above, CommonBond is requesting the attached PA be amended to close on, or before, October 1, 2015.
This project continues to make progress. The project has been recommended for approval by the Planning Commission and will tentatively be considered for approval by the City Council on May 12. Moving forward, CommonBond needs to complete a handful of administrative items before closing. More importantly, CommonBond would like to re-bid the project. It's Staff's understanding the project was recently bid; and the results were unfavorable and unexpected for CommonBond (some areas of the project came in over 25% higher than expected). Additionally, CommonBond is attempting to address unexpected costs associated with soil remediation needs on the site. Finally, CommonBond has agreed to schedule the Subdivision and Site Plan Review for May 12 to allow time to revise the site plan to account for the Planning Commission recommendation and Staff Review Letter. As as result of the items above, CommonBond is requesting the attached PA be amended to close on, or before, October 1, 2015.
Recommendation:
Staff reviewed and responded to the requested contract extension by utilizing direction provided from the City's recently adopted Policy for the Sale of City Owned Land. As a result, a requirement of staff for the proposed amendment was to include an increase to earnest money; and to make earnest money hard. In this scenario, CommonBond has increased their earnest money from $5,000 (1.3% of purchase price) to $13,050 (3.0% of purchase price); and all dollars have become non-refundable.
Both Common Bond and Staff are confident this project will likely close on or before October 1. As mentioned in the Background Section of this case--nearly all required PA due diligence items have been fully completed.
Both Common Bond and Staff are confident this project will likely close on or before October 1. As mentioned in the Background Section of this case--nearly all required PA due diligence items have been fully completed.
Action:
Motion to approve the attached Assignment of, and Amendment to, a Purchase Agreement between the City of Ramsey and Common Bond Communities; subject to review and approval by the City Attorney.
Attachments
- PA Amendment (Purpose of Case)
- Executed PA between HRA and CommonBond
- Transfer of Agreement
- 14-04-078 HRA EXECUTED
- Request from CommonBond
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Tim Gladhill | 04/22/2015 09:55 AM |
| Kurt Ulrich | Kurt Ulrich | 04/23/2015 11:47 AM |
| Kurt Ulrich | Kurt Ulrich | 04/23/2015 11:57 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 04/13/2015 12:43 PM
- Final Approval Date:
- 04/23/2015