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File #: 19-653    Version: 1 Name:
Type: Information/Discussion Item Status: Agenda Ready
File created: 12/11/2018 In control: City Council
On agenda: 1/15/2019 Final action:
Title: Lot 5 Extension Request Discussion
Attachments: 1. 1 - Lot 5 First Amendment - partial sign, 2. 2 - Lot 5 Property Report - Rice County, MN, 3. 3- Crossings - Parcel Aerial, 4. 4- RDP lot 5 memo 010819
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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City Council Meeting Date: January 15, 2019

To: Mayor and City Council
City Administrator

From: Nate Carlson, Economic Development Coordinator
Mitzi Baker, Community Development Director
Scott Tempel, City Planner

Title
Lot 5 Extension Request Discussion

Body
Action Requested:
No action at this time.

Summary Report:
The City of Northfield executed a contract for private development with Big Ten Residential, LLC on May 17, 2016 for the development of the Crossings Site. The developer requested acquisition of the city-owned "Lot 5" property as part of the development agreement. "Lot 5" is on the Northeast corner of the State Highway 3 and 2nd Street West intersection.

Section 4.3 of the Contract for Development states that Future Commercial Improvements on Lot 5 must commence on or before December 31, 2018 and be completed on or before December 31, 2019. The Developer enters into default of the agreement if this action does not happen, and the City acquires the land from the developer.

The Developer, now known as Rebound Development Partners, LLC, has requested an extension for the commencement of future commercial improvements on Lot 5. The letter request for extension is attached to this report. At this time, the developer is requesting a two-year extension. However, the Council has not had the opportunity to discuss further options related to the possible extension. The Council approved a three-month extension of the deadline rather than a two-year extension in order to allow the opportunity for City Council to discuss the appropriate extension duration, and the Council's options should the developer default on the contract.

The three-month extension changed the Future Commercial Improvements commencement date to March 31, 2019 and the completion date to March 31, 2020. The Developer is submitting a request for a two-year extension following the initial three-month extension.

The Developer has also proposed that after the two-year extensio...

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