Consider Extension to Purchase Agreement – Suite Living

 

The HRA and Toti Development (Suite Living) entered into a purchase agreement in September of 2010 for a 1.8 acre parcel west of the existing parking structure. As the contract has progressed, both parties have fulfilled many of the terms of the agreement including the due diligence, all title and survey work, and Toti has accepted the Special Services District language as required under the agreement. Toti has completed all of their entitlements necessary to close.

 

As written, the contract required Toti to close on the property on or before March 31, 2011 or exercise their right to extend as outlined in the contract. They currently have the right to extend the closing date through a series of extensions until September 30, 2011. As part of those options to extend, the seller was to deliver an additional $25,000 hard earnest money to the title company, and pay an additional fee each month of the extension.

 

Toti has been working with their development and financing partner to assemble construction package and close on the property. They contend they have incurred additional costs in preparing this new urban prototype plan and request relief from the additional $25,000 earnest monies to extend the agreement.

 

Toti has prepared and presented a reinstatement of, and amendment to the purchase agreement for your consideration. The Development Management team has worked through the related issues and negotiated the following terms;

During the April 5th HRA worksession, the HRA requested that language be added to the amendment that requires TOTI to provide the HRA a written update monthly regarding their progress on financing and building plans.  That language has been added to the attached amendment for your consideration this evening. 

The DM team recommends the HRA approve the proposed amendment. 

There are no fiscal impacts related to this amendment, however, if accepted the HRA will be foregoing the additional $25,000 in earnest monies in exchange for receiving the existing $50,000 and an acknowledgment that these monies are non-refundable except in the event of an HRA default.

Approve the proposed amendment.