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Consider First Amendment to Purchase Agreement with Centra Homes LLC
Matt Brown, Economic Development Coordinator
The HRA is asked to hold a public hearing and consider a first amendment to a purchase agreement with Centra Homes LLC for a 136-unit detached townhome development along Coon Rapids Boulevard generally between Egret Boulevard and Avocet Street.
The HRA approved a purchase agreement with Centra Homes LLC in June 2018 for HRA's Port Riverwalk redevelopment site. Since that time, Centra Homes has received City approvals for a site plan and plat for a 136-unit detached townhome development, the City has continued to work on obtaining clear title to the property, and public improvements have been designed. It is anticipated that closing will occur this summer and substantial demolition, grading, and infrastructure work will occur yet this year. The HRA is asked to consider an amendment to the original purchase agreement that addresses several issues:
Closing Date. The original purchase agreement set a closing date of no later than June 14, 2019. The amendment would extend this until August 15, 2019. This delay was primarily necessitated by the timeline of various title proceedings.
Land Sale Price. Centra has requested a reduction in sale price from $2,000,000 to $1,622,000. While original estimates for the project assumed a total of 145 housing units, the proposal now includes 136 units, which reduces the overall revenue from home sales. Staff believes that this reduction in sale price is justified.
Sale of Outlot to Park River Estates Care Center. On June 4, the HRA will consider a purchase agreement with Park River Estates for an outlot that will allow for parking lot expansion at the south end of the site. The amendment formalizes this arrangement.
Potential Grading Work Prior to Closing. A development agreement was attached to the original purchase agreement as an exhibit. The development agreement establishes that the developer will be responsible for site grading and construction of private utilities and other private improvements on the development site. The City will construct public streets, sidewalks, and utilities associated with the project. Both Staff and representatives of Centra would like to have at least portions of the infrastructure completed in 2019 and that several finished lots are available for house construction by the end of this construction season. While the development agreement establishes that Centra Homes is ulitmately responsible for grading, the amendment would allow the City to complete portions of the grading work prior to closing and be reimbursed by Centra at closing. This would ensure that the project stays on schedule even if resolution of title issues delays the closing to late summer.
Staff recommends that the HRA approve the first amendment to the purchase agreement with Centra Homes LLC.
First Amendment to Purchase Agreement
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