Adopt Resolution #20-100 Approving Second Amendment to Purchase Agreement for Lots 1, 2 and 3, Block 1, COR TWO; Case of RGH RAMSEY LLC

Purpose:
The purpose of this case is to consider adoption of Resolution #20-100  to extend the Closing Date and Certificate(s) of Occupancy dates due to the Covid-19 Pandemic and it impact of the commercial/retail sector. 

Background:
RGH RAMSEY, LLC the the City of Ramsey have entered into a Purchase Agreement and a First Amendment to Purchase Agreement to acquire and Develop Lots 1, 2 and 3, Block 1, COR TWO. The proposed purchase price is within the City's approved deal range for this parcel; however, it would require site plan approval compliant with COR zoning and vision.

The Buyer has been working with a convenience store and has developed a revised site concept plan.  Due to the Covid-19 Pandemic, the proposed convenience store user has put a hold on all new projects for the short term.  City staff has verified that all new projects have been put on hold by this business but that it is likely that they will be securing new sites late in 2020.  The request by the Buyer is to allow for more time to negotiate a deal with the first end user and to close once a LOI is received.  To date the City has received $40,000 in Non-refundable Earnest Money and has approved a Conditional Use permit for a 75 foot sign on the Development site. It is standard process to have the Planning Commission weigh in on any concept that is associated with a City Purchase Agreement.

Notification is not required.

Observations:
The EDA reviewed the request from the Developer at the May 14, 2020 EDA meeting.  The EDA discussed the impacts of the Covid-19 Pandemic on the commercial/retail sectors and agreed that an extension was warranted.  

Proposed Amendments to Purchase Agreement Terms:

• Extend the final Closing Date from June 15, 2020 to January 15, 2021 (7 months)
• Extend Certificate of Occupancy Date for Building 1 from November 15, 2020 to July 15, 2021 (7 months)
• Extend Certificate of Occupancy Date for Building 2 from July 15, 2021 to February 15, 2022 (7 months)
• Buyer is offering to provide $5,000 in Non-refundable Earnest Money on a monthly basis (up to 6 months, or $30,000) to extend the Building 2, February 15, 2022 certificate of occupancy date

Site Plan:
The Planning Commission is scheduled to review the concept layout from a high-level on June 4. Staff will provide a verbal update at the meeting.

Alternatives:

1. Adopt Resolution #20-100 as presented
2. Adopt Resolution #20-100 with modifications
3. No action/let the PA expire

This case is being handled as part of normal Staff duties.

The EDA recommends adoption of Resolution #20-100 Approving Second Amendment to Purchase Agreement for Lots 1, 2, and 3 Block 1, COR TWO as presented;  subject to City Attorney approval. This agreement provides flexibility in the final determination of the site layout.

Motion to adopt Resolution #20-100 Approving Second Amendment to Purchase Agreement for Lots 1, 2, and 3 Block 1, COR TWO,  subject to City Attorney approval.