11-07-2022 Council Work Session Packet

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WS – Item _1 WORK SESSION STAFF REPORT Work Session Item No. _1 Date: November 7, 2022 To: City Council/EDA From: Michael Grochala, Community Development Director Re: Woods Edge Land Sale, Silver Creek Equity PA amendment Background In June, the City’s Economic Development Authority (EDA) approved the purchase agreement (PA) with Silver Creek Equity (Developer) for the acquisition of 6.27 acres in the Legacy at Woods Edge development. The purchase price is $2,376,154.00. Under the terms of the agreement the Developer is required to construct a multi-tenant retail building or restaurant prior to, or concurrent with, the multi-family building. The agreement provided Developer with a 120 day due diligence period which ends on November 22, 2022. At such time the Developer must either terminate the agreement or deposit an additional $40,000 in earnest money. To date the Developer has not been able to secure any firm retail/restaurant commitments. However they would like to move forward with the development of the multi-family building. The Developer has developed a conceptual elevation of the proposed residential project and site plan. An alternative site plan with a 2nd multi-family building has also been developed. The Developer is requesting an amendment to the PA that would allow for construction of a market rate multi-family building prior to retail/restaurant construction. The building would not be age-restricted. The developer is also requesting a 3 year cap on the retail/restaurant restriction in the agreement. If after 3 years (December 31, 2025) developer is unable to obtain retail/restaurant users they would be allowed to proceed with a multi-family development on the balance of the site. Under this scenario the developer would still be purchasing the entire site at the purchase price previously agreed to. The developer will be present at the meeting to discuss their retail/restaurant efforts and continued interest in the development of the site. If the CC/EDA is supportive of these changes staff will have the language drafted and available for consideration on November 14, 2022. If additional time is necessary a special meeting could be held November 21, 2022. Alternatively, action could be taken on the 14th to extend the due diligence period, allowing for additional discussion time.