12-05-2022 EDA Packet - Laserfiche WebLink

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After seven years the deed restriction would be extinguished. At that time the Developer would still be required to request that the City, as the land use authority, amend the Planned Unit Development to allow uses other than what is currently listed. As with any zoning amendment, this would still require a public hearing, review by Planning & Zoning Board, and adoption of an ordinance amendment by the City Council. As an alternative the development team has proposed an amendment that would allow additional time to seek a commercial user before expiration of the agreement. Under this scenario the EDA could consider replacing the second $40,000 earnest money deposit with an option to extend the due diligence period. The agreement would be amended to allow up to eight (8), three (3) month extensions to the due diligence period. An earnest money deposit of $5,000 would be required with each extension. The earnest money would be applied towards payment of the purchase price. However, if buyer does not proceed with the project only half of the earnest money would be refundable. EDAC Consideration The EDAC discussed the proposed changes at their December 1, 2022 meeting and recommended moving forward with the multi-family building construction with the expectation that it would help drive potential commercial development. Requested EDA Direction Staff is requesting EDA direction on a preferred option: 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. Option 2: Amend the purchase agreement to allow the multi-family building to proceed without prior or concurrent construction of retail/restaurant building. This would include a deed restriction on the commercial portion of the property to limit consideration of a use change for a period of 7 years. Timeline of entitlements process and closing date would likely require extension. Option 3: Amend purchase agreement to allow for extensions to due diligence period with additional, partially non-refundable, earnest money deposits. All other restrictions of the existing purchase agreement would remain in place including construction of retail/restaurant building prior to or concurrent with construction of the multi-family building. Timeline of entitlements process and closing date would need to be adjusted based on extensions. Based on the direction provided staff is prepared to have an agreement available for consideration on December 12, 2022. ATTACHMENTS 1. Concept Plan