12-05-2022 EDA Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT AUTHORITY Work Session Agenda Item 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: December 5, 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. The EDA discussed a possible amendment that would include a deed restriction limiting the use of property to those commercial uses currently allowed in the Planned Unit Development Ordinance. This clause would be in effect for a period of five years from the date of occupancy of the first multi-family building. This would effectively require 7 years from the start of construction before the EDA would release the commercial use restriction on the balance of the site.