12-12-2022 EDA Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: December 12, 2022 TOPIC: Amend Purchase and Sale Agreement with Silver Creek Equity, LLC, Michael Grochala VOTE REQUIRED: Simple Majority. 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. 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. Without a commitment they are not willing to proceed with construction of a speculative commercial building on the site. 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. The Developer is requested 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 also requested EDA consideration to place a time limit on the requirement for retail/restaurant on the balance of the site. The request was discussed at the November 7, 2022 work session. While there was support for allowing the multi-family to proceed, the timeline to limit the commercial requirement to three years was considered too short. On November 14, 2022 the EDA extended the due diligence period for 45 days to allow time for further discussion on proposed changes. At the December 5, 2022 EDA work session the Authority discussed the following 3 options: Option 1: No change to the purchase agreement. The due diligence period will expire on January 6, 2023. The buyer will need to deposit $40,000 in earnest money by that date or terminate the agreement. If buyer moves forward they would have until April 27, 2023 to complete the entitlements process and close on the property. This would require construction of a retail or restaurant building (with tenant or speculative), prior to construction of the multi- family building. The EDA may grant extension to entitlements process if necessary.