10-14-2024 - City Council Agenda Packet

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CITY COUNCIL REGULAR MEETING STAFF REPORT AGENDA ITEM 6H STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: October 14, 2024 TOPIC: Consider Resolution No. 24-139, Approving 15t Amendment to Purchase Agreement with Java Companies VOTE REQUIRED: Simple Majority INTRODUCTION Staff is requesting City Council consideration to approve an amendment extending the length of the agreement and providing for construction of Marketplace Drive. BACKGROUND In September of 2023, the City entered into a purchase agreement with Java Companies for the sale 2.24 acres located at the corner of Lake Drive and 77th Street. Java Companies has been actively working on both adjacent land acquisition and tenant contracts to develop the site. Java has submitted a land use application and plans for rezoning, preliminary plat, conditional use and site and building plan approval. A public hearing is being held by the Planning and Zoning Board and the City Council is scheduled to consider the project in November. The City review process may extend past the closing and extension dates provided for in the agreement. Java is requesting an amendment to allow three additional 60-day extensions to the agreement. Buyers is also requesting that the City construct the proposed road improvements within 12 months of the closing. Staff has reviewed this clause with the City Engineer and City Attorney and comfortable with the proposed language. The existing agreement requires the City to advertise for bids within 30 days of closing. Barring unforeseen circumstances construction of the road will be substantially complete in 2025. Provided that land use requests are approved in November, a late November or early December closing would be anticipated. Plans and specifications for the roadway improvement are complete. Upon closing the City would advertise for bids and award a construction contract for the street and utilities for construction in the spring.