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    4. 1.    
Economic Development Authority (EDA)
Meeting Date: 01/11/2018  
Submitted For: Patrick Brama, Administrative Services
By: Patrick Brama, Administrative Services

Title:
Centra Homes Purchase Agreement [portions of case may be closed to the public]
Purpose/Background:
PURPOSE
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. 

BACKGROUND
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. 

 
Notification:
NA
Observations/Alternatives:
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.
Funding Source:
NA
Recommendation:
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.
Action:
Motion to recommend the City Council:
Approve the attached purchase agreement with Centra Homes for 4.29 acres of city-owned land.

Attachments
Centra Cover Letter
Purchase Agreement
PA Exhibits
Property Listing 51

Form Review
Inbox Reviewed By Date
Kurt Ulrich Kurt Ulrich 01/08/2018 01:31 PM
Patrick Brama (Originator) Patrick Brama 01/09/2018 11:17 AM
Form Started By: Patrick Brama Started On: 12/21/2017 12:23 PM
Final Approval Date: 01/09/2018

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