Adopt Resolution #20-211 Approving Purchase Agreement for Part of Outlot GG, Ramsey Town Center Addition; Case of Java Properties (Portions may be closed to the public)

The City and Java Properties have been negotiating the terms of a purchase agreement over the past two months. Java Properties has agreed to the attached purchase agreement and the general terms and conditions outlined on the attached Term Sheet. The proposed purchase price is within the City's approved deal range for this parcel; however, it still will require site plan and plat approval through the normal planning and zoning process. 

The proposed purchase agreement includes a development concept previously reviewed by the  Planning Commission on September 3, 2020. The Planning Commission is generally comfortable with the current concept plan, subject to full Site Plan Review. The time periods, and extensions outlined in the term sheet and PA are consistent with recent PA templates.  

Notification is not required.

Observations:  The site is .72 acres in size with a purchase price of $250,432 ($8.00/SF). This price is within the approved "deal range".  Java Properties is a Developer and the end user is proposed to be O'Reilly Auto Parts.  A copy of the preliminary site plan is attached.  This was a city generated lead for a CBRE listed city parcel.  Based on the current Listing Agreement with CBRE, the commission will be 3% of gross sales price if sold.

The following items are worth highlighting:
 

Earnest Money	$5,000, Nonrefundable after a Notice to Proceed has been given by the Buyer.
Inspection Period	180 days from Effective Date (Date City Council Approves) (city requires plat/ site plan approval before sale).
Closing	Within 30 days of Notice to Proceed.
Extensions	Developer will deposit $5,000 in escrow for each 60 day extension (2 extensions allowed) Once extensions are made the money becomes non-refundable.
Performance	City to require construction of a minimum 7,000 SF building and obtain a Certificate of Occupancy one year after Closing.  If this is not done, the City may exercise the Right of Re-Entry.

The EDA reviewed this item at the September 10, 2020 Meeting and recommends approval as presented.  Draft Minutes from that meeting are attached for review.

Alternatives:

1. Adopt Resolution #20-211 Approving Purchase Agreement for Part of Outlot GG, Ramsey Town Center Addition; subject to City Attorney review (EDA recommendation)
2. Adopt Resolution #20-211 Approving Purchase Agreement for Part of Outlot GG, Ramsey Town Center Addition with changes; subject to City Attorney review 
3. Do not accept the purchase offer

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

The EDA recommends adoption of Resolution #20-211 Approving Purchase Agreement for Part of Outlot GG, Ramsey Town Center Addition; subject to City Attorney review

Motion to adopt Resolution #20-211 Approving Purchase Agreement for Part of Outlot GG, Ramsey Town Center Addition; subject to City Attorney review