Consider Purchase Agreement for Outlot B, COR Stone Brook Academy; Case of Stories Foundation
(Portions may be closed to the public)

The City of Ramsey and Stories Foundation have been negotiating the terms of a purchase agreement over the past few months.   Stories Foundation 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 mixed use development concept previously reviewed by the Planning Commission. 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 .52 acres in size with a purchase price of $67,953.60. ($3.00/SF) This price is within the approved "deal range".  The mixed use project will be developed by Stories Foundation.  The project will consist of a Cafe', retail store on the first floor with apartments and a patio on the second floor.  A copy of the preliminary site plan and elevations are attached to the Purchase Agreement.  The purchase price for this parcel is slightly less than recent transactions in the COR. (Gigi's Salon was at $4.00/SF)  This is due to the challenging site configuration for this remnant parcel.  The developer is not asking for any financial assistance with this project.  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	$1,000, 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 $2,000 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 12,000 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.

Alternatives:

1. Recommendation to City Council to approve Purchase Agreement for Outlot B, COR Stone Brook Academy as presented; subject to City Attorney review (Staff recommendation)
2. Recommendation to City Council to approve Purchase Agreement for Outlot B, COR Stone Brook Academy with changes; subject to City Attorney review
3. Something else.

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

Staff recommends approval of the attached Purchase Agreement for Outlot B, COR Stone Brook Academy as presented, subject to City Attorney approval.

Motion to recommend that the City Council approve the attached Purchase Agreement for Outlot B, COR Stone Brook Academy, subject to City Attorney approval.