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Economic Development Authority (EDA)
Patrick Brama, Administrative Services
Centra Homes Purchase Agreement [portions of case may be closed to the public]
Consider the attached purchase agreement for Centra Homes to purchase roughly 4.29 acres of city-owned land located in The COR for a single family detached housing development.
The structure of this Purchase Agreement is a little unique, in that it contemplates three layouts, with three different lot counts (33, 35, 36), with three different offer prices ($295,000, $315,000, $330,000). The developer has indicated the asking price is based on a mixture of the number of sellable lots versus required infrastructure. Staff anticipates, through the future entitlement process, a layout will be selected, and this purchase agreement will be amended to formalize the final sale price.
Please see attached cover letter. Please see company website. Centra Homes is in good standing with the State of Minnesota business filing search system. Staff has not worked with Centra Homes on a project in Ramsey. However, staff has been working with Centra Homes for the past few months, as they have contemplated several sites in Ramsey.
This purchase agreement was developed based on the city's template purchase agreement and policy for selling city owned land. The City Attorney has reviewed the attached purchase agreement. Below are major deal terms.
Lot Size: roughly 4.29 acres
Price: offer price (295K to 315K), asking price $350,000
Earnest Money: $10,000
Inspection Period: 07/01/2018* (closing within 30 days)
Extension Period: two 30 day options at $5,000 each.
Construction Deadline: 5 COs annually, starting in 2019, $5,000 penalty per missed CO
Exhibits: show the proposed layouts
*Council won't review this case until mid-February, the inspection period is proposed to be about 4.5 months.
Staff is generally comfortable with the proposed purchase agreement. Staff would welcome direction from the EDA on any deal terms (i.e. price). It's possible to provide staff general direction on this item without going into closed session.
Motion to recommend the City Council:
Approve the attached purchase agreement with Centra Homes for 4.29 acres of city-owned land.
Centra Cover Letter
Property Listing 51
01/08/2018 01:31 PM
01/09/2018 11:17 AM
Form Started By:
12/21/2017 12:23 PM
Final Approval Date:
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