4.2.
Economic Development Authority (EDA)
- Meeting Date:
- 11/09/2017
- By:
- Patrick Brama, Administrative Services
Title:
Preliminary Deal Structure: Case of Paxmar
Purpose/Background:
PURPOSE
Consider preliminary deal structure for the purchase of roughly 2.9-acres of city-owned land by Paxmar for a residential development project. The purpose of this case is not to provide formal direction. A formal purchase agreement will be brought back to the EDA in December.
BACKGROUND
Paxmar is a twin cities based residential development company. They are currently working on two separate 100+ unit single-family residential projects located near Puma Street and Alpine Drive (two different parcels, two different existing property owners, two different product types). One of their projects requires the purchase of a small remnant city-owned property . This property is known as the "former Legacy Christian Academy park dedication property" (CBRE Listing 13). This property is roughly 4-acres in size. However, Puma Street is being realigned through this city-owned property (CBRE Listing 13). As a result, a portion of the property is being sold to Capstone Homes (west side, 1.1 acres), and a portion is being sold to Paxmar (east side, 2.89 acres). The City has already approved the Capstone Purchase Agreement at $25,000 per acre. The Paxmar purchase agreement will be nearly identical to the Capstone Purchase Agreement.
Consider preliminary deal structure for the purchase of roughly 2.9-acres of city-owned land by Paxmar for a residential development project. The purpose of this case is not to provide formal direction. A formal purchase agreement will be brought back to the EDA in December.
BACKGROUND
Paxmar is a twin cities based residential development company. They are currently working on two separate 100+ unit single-family residential projects located near Puma Street and Alpine Drive (two different parcels, two different existing property owners, two different product types). One of their projects requires the purchase of a small remnant city-owned property . This property is known as the "former Legacy Christian Academy park dedication property" (CBRE Listing 13). This property is roughly 4-acres in size. However, Puma Street is being realigned through this city-owned property (CBRE Listing 13). As a result, a portion of the property is being sold to Capstone Homes (west side, 1.1 acres), and a portion is being sold to Paxmar (east side, 2.89 acres). The City has already approved the Capstone Purchase Agreement at $25,000 per acre. The Paxmar purchase agreement will be nearly identical to the Capstone Purchase Agreement.
Notification:
NA
Observations/Alternatives:
Summary of Major Deal Terms
(1) $25,000 per acre. Final size to be determined via plat.
(2) $5,000 of earnest money.
(3) Inspection Period, March 1, 2018.
(4) Closing, May, 2018.
(5) Two extensions allowed ($2,500 each of additional earnest money).
(6) Land proceeds will be deposited into the Parks Trust Fund (per previous policy direction)
(2) $5,000 of earnest money.
(3) Inspection Period, March 1, 2018.
(4) Closing, May, 2018.
(5) Two extensions allowed ($2,500 each of additional earnest money).
(6) Land proceeds will be deposited into the Parks Trust Fund (per previous policy direction)
Funding Source:
NA
Recommendation:
Staff is looking for any preliminary direction, input, questions, etc. No formal direction requested. This case will come back as a formal purchase agreement in December.
Action:
Staff is looking for any preliminary direction, input, questions, etc. No formal direction requested. This case will come back as a formal purchase agreement in December.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 11/06/2017 03:21 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 11/05/2017 05:28 PM
- Final Approval Date:
- 11/06/2017