- Meeting Date:
- 06/11/2013
- Submitted For:
- Kurt Ulrich
- By:
- Jo Thieling, Administrative Services
Information
Title:
Background:
McDonald's is comfortable with shortening the extension to October 9, or 90-days. McDonald's submitted their building permits several weeks ago and has committed to the project, but would like to extend the expiration of the contingency period to allow all contingencies to be completed prior to closing..
The most significant open items are:
· Plat and easement recordation
· Completion of the access road construction and utilities
The HRA is scheduled to order the road and utility improvements on June 11, to be substantially complete by August 2 per contract. The plat and easements are expected to be recorded next week.
Observations/Alternatives:
The revised document (with a 90-day extension) is now proposed to read:
FIRST AMENDMENT TO REAL ESTATE CONTRACT
This FIRST AMENDMENT TO REAL ESTATE CONTRACT ("Amendment") is dated _____ between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RAMSEY, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota ("Seller") and McDONALD'S USA, LLC, a Delaware limited liability company ("Purchaser"). The following statements are a material part of this Amendment:
A. Seller and Purchaser entered into a Real Estate Contract dated December 19, 2012 ("Contract") for the property described in Exhibit A attached to the Contract and incorporated into this Agreement by this reference.
B. Purchaser has expended considerable time, money and effort to satisfy the conditions precedent in the Contract.
C. The expiration of the Contingency Period is about to occur, and the parties desire to extend such date.
THEREFORE, in consideration of the mutual covenants contained in the Contract and other good and valuable consideration, the receipt of which is hereby acknowledged between the parties, Seller and Purchaser agree as follows:
1. The expiration of the Contingency Period set forth in Article 6A of the Contract is extended to expire on October 9, 2014.
2. Except as modified by this Amendment, the Contract is ratified and confirmed by the parties.
3. This Amendment may be signed in one or more counterparts, all of which taken together shall constitute one and the same document.
Recommendation:
Extending the contingency period will allow the City to proceed to closing with all contingencies removed. Not approving the extension could potentially allow McDonald's to walk away or self-perform on the project improvements, neither option is desireable given the desire of the HRA to close on the property and to complete the site improvements in a timely manner.
Funding Source:
Not applicable.
Action:
Approve First Amendment to the Reaal Estate Contract Between the Ramsey HRA and McDonalds USA, LLC with an extension of the contingency period to October 9, 2013.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 06/06/2013 05:16 PM |
- Form Started By:
- Jo Thieling
- Started On:
- 06/06/2013 01:20 PM
- Final Approval Date:
- 06/06/2013