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11111oll of Mounds View Staff R Item No: 3 Meeting Date: December 4, 2017 Type of Business: Work Session Administrator Review: To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Predevelopment Agreement with INH Properties Introduction: Crossroad Pointe is a 4.25 acre city owned redevelopment site that the City has been marketing for past few years in order to attract a developer that fits the highest and best use for the site. At the August 21, 2017 Council Worksession three developers presented their proposals to the City Council and the Council chose to work with INH Properties who is proposing to build an approximately 124 unit market rate apartment building and a stand- alone destination retail component. The Developer would prefer to start construction in 2018. Discussion As a next step in the redevelopment process a predevelopment agreement has been drafted. A predevelopment agreement allows the developer to have legal access to the site for one year in order to conduct its due diligence such as soil borings, site measurements, etc. The agreement also exclusively ensures INH Properties that the City won't sell the land from underneath the developer while they are trying to conduct their due diligence. A predevelopment agreement outlines the basic terms and conditions of a contract for private redevelopment to be entered into by the redeveloper and seller. The pre - development agreement is not deemed conclusive or binding upon either party except the section regarding due diligence or Exclusive Period, and fees. It does define the parties, specify the property to be developed, outline the conditions, allows time to negotiate a purchase price, due diligence, closing date, covenants, debt, fees, miscellaneous items, and termination. City staff and INH Properties have entered into several conversations and have arrived at a verbal consensus regarding the predevelopment agreement. The City Attorney has reviewed the predevelopment agreement and any recommended changes have been made. Any fees specified in the agreement have been collected and an escrow account has been established.