5.1.
HRA Regular Session
- Meeting Date:
- 08/09/2011
- By:
- Darren Lazan, Housing & Redevelopment Authority
Title:
Consider Amendment to Purchase Agreement - Toti Development/Suite Living
Background:
In The fall of 2010, the HRA entered into an agreement with Toti Development for the purchase of land west of the existing parking structure. Toti proposed to develop approximately 90 units of assisted living facilities in a three story building fronting Sunwood Drive. At the time of this consideration, the development team had received interest from 3-4 senior housing groups for similar facilities. The market for this product is widely believed to support approximately 100 units in the immediate area.
The HRA considered the viability of persuing more than one potential user, but determined it would undermine the success of that use in The COR and could result in negative momentum should one struggle or fail. Accordingly, the HRA chose one proposed developer based both on product and offering price, and proceeded to contract. As the development plans and financing efforts have progressed, the proposed closing dates have been modified from fall 10, to spring 11, and now the final closing date in the current amended agreement is approaching on August 15th, 2011.
Toti has completed the entitlement process receiving all necessary site plan approvals for this project.
Toti has paid $50,000 in earnest monies that are now non-refundable, and an additional $15,000 in fee's for it's current extension. A final payment of $5,000 under the current extension is presently due.
The HRA considered the viability of persuing more than one potential user, but determined it would undermine the success of that use in The COR and could result in negative momentum should one struggle or fail. Accordingly, the HRA chose one proposed developer based both on product and offering price, and proceeded to contract. As the development plans and financing efforts have progressed, the proposed closing dates have been modified from fall 10, to spring 11, and now the final closing date in the current amended agreement is approaching on August 15th, 2011.
Toti has completed the entitlement process receiving all necessary site plan approvals for this project.
Toti has paid $50,000 in earnest monies that are now non-refundable, and an additional $15,000 in fee's for it's current extension. A final payment of $5,000 under the current extension is presently due.
Observations:
Toti, as well as their finance and development partners, would like to provide an update directly to the HRA and would like the HRA's consideration of an amendment to the current Purchase Agreement to allow them to complete the work necessary to close on the property.
The development team and HRA counsel have completed a draft second amendment to the purchase agreement for your consideration at the meeting.
The development team and HRA counsel have completed a draft second amendment to the purchase agreement for your consideration at the meeting.
Recommendation:
The development team recommends the HRA consider the history, position, and proposal of the developer and the proposed amendment. If appropriate, direct staff to execute the amendment based on discussion and execute it. Alternatively, the HRA could consider allowing the existing agreement to either close or expire and place the property back on the market.
Funding Source:
N/A
Council Action:
Approve the second amendment to the Purchase Agreement with Toti Development and direct staff to execute based on the discussion at the meeting.
Attachments
No file(s) attached.
Form Review
- Form Started By:
- dlazan
- Started On:
- 08/04/2011 12:20 PM
- Final Approval Date:
- 08/04/2011