4.6.
CC Regular Session
- Meeting Date:
- 09/13/2016
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Approve Lifestyle Construction Services Purchase Agreement Amendment/ Extension Request
Purpose/Background:
PURPOSE
Lifestyle Construction Services Purchase Agreement Amendment/ Extension Request.
BACKGROUND
The City entered into a purchase agreement for the sale of roughly 3-acres of city owned land to Lifestyle Construction (Bill Gleason) on May 31, 2016 for what is commonly referred to as the "U-shaped" residential parcel located in The COR. This agreement was set to close by September 26 (10 days after the September 16 inspection period deadline).
Site History/ Site Information/ Property Listing
For detailed information on this site, please see 05/10/2016 Council regular meeting agenda (review of purchase agreement).
Developer/ Proposed Project
For detailed information on the developer and proposed project, please see 05/10/2016 Council regular meeting agenda (review of purchase agreement).
Project Update
Mr. Gleason (the developer) has run into a handful of challenges in site design (which, were expected due to the properties of this site). As a result, he has taken longer to complete the entitlement process than originally expected (i.e. City site plan review process). He is still proposing a 12-unit, rambler style, detached, single family, association-type product. Staff recently met with Mr. Gleason, and his project engineer. It appears the project is moving forward--staff is expecting a sketch plan review in October.
For detailed information on the developer and proposed project, please see 05/10/2016 Council regular meeting agenda (review of purchase agreement).
Project Update
Mr. Gleason (the developer) has run into a handful of challenges in site design (which, were expected due to the properties of this site). As a result, he has taken longer to complete the entitlement process than originally expected (i.e. City site plan review process). He is still proposing a 12-unit, rambler style, detached, single family, association-type product. Staff recently met with Mr. Gleason, and his project engineer. It appears the project is moving forward--staff is expecting a sketch plan review in October.
REQUEST (purpose of case)
Mr. Gleason needs to extend the "inspection period" within the attached purchase agreement. As the agreement reads, he is only allowed one 30-day extension (to October 16, 2016). However, Mr. Gleason needs a 60-day extension (to November 16, 2016). He has indicated he is willing to place an additional $2,500 in escrow for the extension (as contemplated by the original agreement for a 30-day extension).
Observations/Alternatives:
NA
Funding Source:
NA
Recommendation:
Staff is comfortable with the proposed amendment/ request. Staff believes the original inspection period (due diligence period) for this particular site was very aggressive (about 3 months). Extending this agreement to November is a more realistic timeline (about 5 months for due diligence).
The policy question here--is the Council okay with Mr. Gleason paying only $2,500 for the 60-day extension? The original purchase agreement calls for $2,500 for a 30-day extension. Given the general historic lack of interest in this site, the many site challenges, and the fact that the developer is still pushing this project forward (in comparison to the be benefits this development will bring to the City), staff is comfortable with recommending approval of the proposed amendment.
If another extension is requested by the developer, staff will ask for additional earnest dollars.
The policy question here--is the Council okay with Mr. Gleason paying only $2,500 for the 60-day extension? The original purchase agreement calls for $2,500 for a 30-day extension. Given the general historic lack of interest in this site, the many site challenges, and the fact that the developer is still pushing this project forward (in comparison to the be benefits this development will bring to the City), staff is comfortable with recommending approval of the proposed amendment.
If another extension is requested by the developer, staff will ask for additional earnest dollars.
Action:
Motion to:
Approve the attached amendment to the Purchase Agreement between the City of Ramsey and Life Style Properties Inc.; subject to final review and amendments by the City Attorney.
Approve the attached amendment to the Purchase Agreement between the City of Ramsey and Life Style Properties Inc.; subject to final review and amendments by the City Attorney.
Attachments
- Lifestyle Construction Services PA Amendment 1 09082016
- PA Extension Amendment Request
- 05_10_16 Purchase Agreement Lifestyle Properties and City of Ramsey
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 09/08/2016 02:08 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 08/30/2016 04:14 PM
- Final Approval Date:
- 09/08/2016