Site Information
The subject property is roughly 1-acre in size and is zoned COR-3 Business Park.  This site is located just south of the brand new Casey's store, on the SW quadrant of Ramsey Boulevard and Sunwood Drive.  From a development perspective, this site does not have too many challenges (listed below).  Overall, its a clean, rectangular-shaped, flat site, with solid visibility, good access, and utilities nearby.

How will the City handle access to the site from a private road (NOTE: Casey's access is a private access drive)?  How will the site be addressed (on a private drive)? How, if at all, does this project effect the construction of Peridot Street or Veterans drive?  Is this the correct site for this use?  These are items that will be discussed by the Planning Commission and City Council.

Property Listing (#50)

The City has officially listed this property with a broker. The City has established an official asking price for this property ($6.00 psf or $261,000 per acre).  Outside of Casey's, this is the first prospect showing interest in this particular parcel for several years (5+).  This offer is for a 1-acre portion of the larger 14-acre site.

 

OGA Acquistions LLC
For background information on OGA, please see the attached OGA MEMOs and check out their website: http://www.oman-gibson.com.  In summary, OGA is a Tennessee based national developer that specializes in medical office users.

Proposed Project
OGA is proposing a 5,100 sf medical office building in The COR.  The use is an out-patient medical clinic (further details can be provided in closed session to the EDA).  Please see OGA website for example projects (see completed projects page).

(1) Policy Compliance
The attached PA is simply an edited version of the City's adopted "template PA." Therefore, it generally appears to be in compliance with City's land sale policies.  Because no subsidy is being requested, staff did not check this project against our business or housing subsidy policies. 

(2) Offer Price
The attached offer of $230,000 appears to be a reasonable asking price ($261,000 CBRE asking price).  It should be noted, OGA adjusted their purchase offer on this property to account for the required road extension (hence the roughly $30,000 discrepancy).

(3) Earnest Money
$10,000 to become hard after contingency period (4%).

(4) Contingency Period
180 days after effective date. 

(5) Extension Option
If the buyer decides to extend contingency period, they will be required to place $5,000 of additional dollars in earnest for each 30 day extension (max of two).

(6) Construction Deadline
This agreement does include a construction deadline.  However, it is not a "strong" restriction (see provision #30 in the PA).  OGA negotiated to remove the City's ability to legally enforce this provision (i.e. a recorded right-of-re-entry or financial penalty).  Generally, staff is not too concerned about this provision for this particular development.  The intent of the construction deadline provision (within the City's land sale policy) was to protect the City from two scenarios (1) a developer buying more land than what's needed for a primary development proposal--and sitting on the remainder for future speculative development, and (2) provide the City assurances on a proposed project in exchange for a business subsidy.

(7) Development Agreement
This agreement requires the buyer to complete the entitlement process before closing.  This ensures the City knows what will be constructed, and that it will comply with zoning code, before closing.  This Purchase Agreement also requires OGA to provide visual renderings for architectural review by the Planning Commission and City Council (which is consistent with the City's land sale policy).  However, OGA negotiated to remove the City's express ability to approve/ deny the project simply based on if we like the way the project looks (i.e. we don't have any way to legally enforce our architectural review provision).  With that said, the OGA project still must comply with City zoning regulations and COR Design Standards--which are fairly strict.  Additionally, OGA has a track record of completing quality projects--and has indicated an interest to complete a nice looking project in The COR.