Title
Resolution to Approve Amendment No. 2 to the Option to Purchase Agreement with Village Green Residential Properties LLC (8 Votes Required)
Memorandum
Village Green Residential Properties LLC has an Option to Purchase Agreement with the City to acquire and develop the City-owned site located at the corner of First and Washington. The Option Agreement was approved by Council on February 20, 2007 with an expiration of February 20, 2008 but was subsequently extended to expire on December 30, 2008.
The Agreement requires the developer to make reasonable progress towards developing the property in order to exercise the Option. Despite several unanticipated issues, such as higher than anticipated construction costs, which delayed the progress of this development, Village Green has worked through its issues, and on October 7, 2008, obtained a recommendation for site plan approval from the City’s Planning Commission, which will be coming for Council consideration in December after a hearing for a zoning change to PUD is held. Should Council approve the zoning request and the site plan, the developer anticipates being able to execute on the Option Agreement in March 2009 and starting construction of the initial phase later in the spring of 2009.
In order to complete this project the Developer has requested a further extention of the term of the Option Agreement until March 31, 2009. plus authorization for two one-month extensions at the City Administrator’s discretion.
In addition, Village Green is requesting that the sales price be capped at $3.300,000.00. Under the current terms of the Option the sale price is established at $3,190,000.00 with the provision that if additional units are added that the price will increase by $20,000.00 per unit. The present site plan anticipates 156 units (then more than originally planned). Village Green’s request to cap the sale price at $3,300,000.00 (in lieu of $3,390,000.00 under the current Option terms) is consis...
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