10-25-2000 Council Agenda - Laserfiche WebLink

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Mayor & City Council October 20, 2000 Page 2 ♦ The deadline by which the developer is to start construction on the Phase II building is extended from July 1, 2000 until May 1, 2001. ♦ The completion date for the Phase H building is extended from December 31, 2000 until October 1, 2001. ♦ The City's obligation to convey the Phase II property is extended to no later than May 1, 2001 and subject to execution of a purchase agreement/lease with the future owner /tenant, execution of an assessment agreement relating to the Phase II development property, consent by the holder of the first mortgage agreeing to be bound by the assessment agreement, evidence of a letter of commitment from a lending institution for the acquisition and construction of the Phase II improvements, delivery to the City of a developer's guarantee, issuance of a building permit for the Phase II improvements, as well as other terms and conditions as outlined in our original development agreement. • The purchase price for the land will increase from $68,010 to $88,223. This increase will reimburse us for the 2002 loss of tax increments of $20,213 resulting from the building not being completed by December 31, 2000. ♦ The City will withhold the developer reimbursement of $17,500 for site improvement expenses called for in Section 3.3 of the original development agreement. These payments will be withheld until the completion of the Phase II building. Should the developer not proceed with the Phase II building subject to the revised terms and conditions of our development agreement, this reimbursement would be forfeited by the developer and retained by the City. ♦ The developer will reimburse us for any and all real estate taxes the City is obligated to pay for the years 2000 and beyond as a result of the delays in this transaction. (Taxes are due on 'A of the Precision Tree property given that this was non - exempt property in 1999.) • The developer will reimburse the City for all costs associated with the preparation of amendments to this development agreement including, but not limited to, legal, planning, fiscal consultants, and City staff time. In order to ensure payment of these amounts, I would propose a deposit of $10,000 upon execution of this agreement. This amount would be held by the City to reimburse itself for the expenses incurred. Any funds not expended would be returned to the developer. Should expenses exceed the amount of this deposit, the developer would then be responsible for making payment of said expenses within 15 days from invoicing. • Resolution of the landscaping issues associated with the berm for the Phase I property as well as that proposed for the Phase II property. ♦ Resolution of any outstanding developer claims for site improvement costs relating to water service removal from Condit Street and excavation of foundation areas from the northerly one acre. If the Council agrees with this concept and subject to consent by the developer, this information will be forwarded to Tom Bray of Briggs & Morgan for drafting of the amendments. It would be \ \CLCSRVOI \ HOME \KrisP \CORRESP\2000 \6iagini.doc Page 61