Title
Resolution to Approve Amendment No. 7 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 City Council on February 20, 2007 and was last amended on April 19, 2011 to extend the term to August 30, 2011.
Since the last extension, which was provided due in part to the inclusion of a “bathtub” design for the deck, the developer has initiated the work on the construction documents. These documents are expected to be the final documents before construction commences. While preparing these documents, the City, DDA, and Village Green have identified several modifications that should be made in order to provide a deck that operates effectively as a public parking structure. Some of these modifications include reducing the size of columns, potentially changing the location of some columns, addressing potential visibility and durability issues with the stairways to the extent permitted by the building code, etc. The mutual resolution to these items took longer than anticipated and has necessitated this request for a brief extension of the option agreement.
The developer still anticipates breaking ground this construction season and is anxious to do so. The attached extension requires a non-refundable $50,000 payment from the developer to the City as an expression of their commitment to delivering this project. In exchange, the City would agree to an extension until November 3, 2011. It also permits an additional 30 day extension to December 3, 2011 at the City Administrator’s discretion for an additional $50,000 non-refundable payment.
Council may recall the proceeds from the sale of this property were planned to complete the financing for the construction of the Court/Police bu...
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