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• <br />WS — Item 3 <br />WORK SESSION STAFF REPORT <br />Work Session Item 3 <br />Date: Council Work Session, August 6, 2007 <br />To: City Council <br />From: Mary Divine <br />Re: Purchase Agreement — Anderson Builders <br />Background <br />At the last city council meeting on July 23, 2007 the city council tabled action on the <br />Anderson Builders proposal that is comprised of two separate actions. <br />• 1. Adoption of an Ordinance to sell the city -owned three acres of land on Lake Drive for <br />commercial/office /medical uses for $6.35/sq. ft. <br />2. Entering into a preliminary development agreement to proceed with Anderson <br />Builders in a future phase that would include: <br />a. Completion of a feasibility study for realignment of 77th Street. <br />b. Anderson Builders completion of a site plan depicting the intended <br />redevelopment project <br />c. Determination of the method and projected amount of special assessments for <br />the realignment project to be allocated to the property and adjacent properties. <br />d. Negotiation of the terms for the city's purchase of necessary right -of -way, not <br />to exceed $12 /sq. ft. <br />In response to concern by Councilmember Carlson, Anderson Builders has agreed to <br />eliminate language within the purchase agreement. Section 35 (a) will be changed to: <br />"When Purchaser constructs building improvements on the Subject Property, Purchaser <br />shall construct such improvements in substantial conformance with the Development <br />Plan to generally include approximately 26,900 sq. ft. of professional office, medical and <br />multi -tenant retail development_ unless otherwise consented to by Seller, which consent <br />will not unreasonably be withheld." <br />S Attached is a memo from Steve Bubul, attorney for Kennedy & Graven, regarding an <br />updated appraisal of the property completed in June 2007 which was lower than an <br />1 <br />