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CR 98-37 Pruchase/Development Agreement Benshoof & Associates/Brauer & AssociatesFebruary 24, 1998 Proposed Action Staff recommends adoption of the following motion: Move to approve execution of purchase /development agreement for City /HRA -owned property located between Eighth and 11th Avenues, south of Excelsior Boulevard. The HRA is also being requested, at their March 4 meeting, to take action on this item. Overview O ; ti e 0 P K Council Report 98 -037 PURCHASE /DEVELOPMENT AGREEMENT- - BENSHOOF & ASSOCIATES/BRAUER & ASSOCIATES Benshoof & Associates and Brauer & Associates have submitted a proposal for the development of the above detailed property. The project would involve construction of an approximately 6,000 - square -foot, single level office building. At the February 17, 1998, HRA work session, staff outlined the project with the board. There was a general consensus among board members directing staff to continue working with the developer to move the project forward. Staff is now proposing approval of a purchase /development agreement. This agreement details a variety of tasks that would need to be completed by both the City /LIRA and the developer. With successful completion of all these tasks, the property would be deeded to the developer, subject to approval of the sale by the HRA at a public hearing. The City needs to take action on this item because the development agreement requires the City to deed the property it owns in this area to the HRA. Primary Issue to Consider • What are the specifics of the agreement? Supporting Documents • Purchase and development agreement - -see HRA Report 98 -04 Jame D. errigan Plan ing & Economi _. Development Director Council Report 98 -037, February 24, 1998 - Page 2 Primary Issue to Consider What are the specifics of the agreement? • Purchase price of $50,000 for an approximately 34,160- square -foot parcel (this would be for the property from Eighth Avenue to approximately a line extending west of the westerly right -of -way of Ninth Avenue - -see attached site plan). • The City /HRA to provide sanitary sewer, gas, and water to the property line. The City /HRA would have the ability to terminate the agreement if it was determined that the cost of providing utilities was excessive. • Approval of a conditional use permit for the project, along with any additional design standards determined necessary and appropriate, this would include approval of a landscape plan, building design, and drainage plan. • The City would agree to transfer to the HRA the property which is owns in this area, except for the parcel which contains the water tower. The HRA, in turn, would agree to provide the City with any excess funds remaining from the sale proceeds following completion of all the work necessary to facilitate the sale to the developer. • The developer would agree to complete a platting of the property. The cost of platting would be shared equally between the City /HRA and the developer. • The developer would agree to landscape and maintain the City /BRA -owned property between the parcels to be sold to the developer and 1 lth Avenue. The landscaping would need to be constructed in accordance with a plan approved by the City as part of the CUP process. The landscaping agreement would remain in effect for ten years. This agreement would not prohibit the City/HRA from making improvements on this property or terminating the landscaping agreement. If the developer did not properly maintain the landscaping, it would be done by the City and assessed back to the developer. • The sale would be contingent on approval of the sale by the HRA at a public hearing. • The timing for completion of the improvements would be six months after closing on the property. • The prohibited uses identified for future reuse of the property include the following: - adult - oriented uses - auto sales /leasing - gasoline service station or auto repair - bar or tavern - fast food restaurant Council Report 98 -037, February 24, 1998 - Page 3 Alternatives The City Council has the following alternatives regarding this item: 1. Approve the action as recommended by staff. This will allow the City /HRA and developer to work towards completing the various tasks as detailed in the agreement. 2. Continue for additional information. Under this alternative the board needs to be specific as to what additional information is needed to make a decision on this matter. It needs to be emphasized that the developer's present lease is expiring in the near future and, therefore, they are eager to move forward on this project. 3. Do not approve entering into an agreement with the subject developer. With this action, the board needs to provide direction to staff on how they should proceed in dealing with the subject property.