City Council Agenda and Packet 2015 10 06

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City Council Meeting Minutes September 15, 2015 Page 14 of 19 Economic Development Director DeJong reviewed the Seventh Amendment to Sales Agreement: 1) Delays the $200,000 purchase price to be paid at the second closing for transferring Lot 3 (former Napa building and currently TILT Pinball) after the stabilization scope of work is complete. 2) Increases the earnest money deposit to $20,000 at the first closing to transfer the Grain Elevator parcel and Outlot A. PUBLIC COMMENTS Erik Hartronft stated they always assumed they would have to pay the full purchase price when they received title to the property. The city attorney advised them they must pay the full purchase price before taking possession of the property. It was their understanding the earnest money served as their investment until the stabilization was done. They supported the resolution approving the seventh amendment to the contract. Mayor Muckle asked for clarification on the closing and transfer of the property. Economic Development Director DeJong explained the intent was for the applicant to do the work on the stabilization before the closing of the property. City Attorney Light explained two years ago there were different scenarios reviewed relative to the closing. The contract does have imbedded the scenario there could be one closing, but it also provided closing on the grain elevator with title for the Lot 3 being held until the stabilization was complete. The grain elevator could take a tenant and be put to use while the stabilization work was completed. He was not concerned with revising the contract to allow a joint single closing. If the applicant cannot complete the work by the end of October, it would move the closing to November. Under the present scenario, the applicant could record the Plat, PUD and landmark the property. The second closing requires the City Manager to confirm the stabilization is done and accepted before the delivery of the deeds and payment of the purchase price. Erik Hartronft explained the goal is to have the stabilization done in order to close on the property. One reason they accept the split closing is to close on the property and move forward with the renovations on the east side of the grain elevator. City Attorney Light stated the contract contemplates the approvals will be in place, but they won't be recorded until the initial closing. He stated language could be added to the Seventh Amendment to have a mutual agreement upon the trigger point for the recording of the Plat and PUD in advance the closing of any conveyance and the landmarking resolution has to be put into the record at the time the lot is created. Erik Hartronft stated they are fine with the proposed amendments to the agreement. He stated they do not expect any special treatment. MOTION: Mayor Muckle moved to approve Resolution No. 64, Series 2015, seconded by Council member Loo. Roll call vote was taken. The motion carried by a vote of 7 -0. 32