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to city of BRIN Report Number 13-137 (HTON Agenda Section VIII-2 the city that works for you Council Meeting Date June 11,2013 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution authorizing execution of a Contract for Private Redevelopment by and between the City of New Brighton and Pulte Homes of Minnesota, LLC for the sale and redevelopment of land in New Brighton Exchange. DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director CITY MANAGER'S APPROVAL: ,4b No comments to supplement this report Comments attached Recommendation: Resolution authorizing execution of a Contract for Private Redevelopment by and between the City of New Brighton and Pulte Homes of Minnesota, LLC for the sale and redevelopment of land in New Brighton Exchange. Legislative History: See report for additional background information on project history. Financial Impact: See report for additional information on the financial impact of this proposal. Explanation: Pulte Homes (Pulte) originally approached the City in April 2012 about interest in a 27 acre tract of land in New Brighton Exchange (Block I) for a potential single-family development. Council directed staff to work with the Planning Commission and EDC to seek feedback on Pulte's proposal, due to the fact that it was a departure from previous guide plans which called for much higher density townhomes and condominiums. That effort took place in the summer of 2012 and both groups expressed interest in the concept. Eventually, Pulte and the City entered into an Exclusive Negotiations Agreement that gave the company until October 31, 2012 to investigate the site. It is not clear how much due diligence work was actually done, since the company did not do any environmental or geo-technical testing. Pulte subsequently submitted a Letter of Intent to purchase the site and then met with the City Council last December to discuss their offer. Pulte indicated at the time that they wanted a more formal agreement with the City before investing substantial resources in additional testing and due diligence efforts. Typically, the City uses a term sheet to start the negotiations, which then becomes the framework for a more comprehensive redevelopment agreement. Pulte is used to working with private parties and standard purchase agreements, so the two sides had to compromise on the form of agreement to keep the process moving along. As previously reported, we have been working on a Redevelopment Agreement that outlines the business terms and legal issues. Due to time constraints, Pulte would like to have the agreement presented to the City Council on Tuesday night and, if approved, start the site investigation process/due diligence phase shortly thereafter. I:\COUNCIL\REPORTS\2013\Community Development\6-11-2013Tulle Redevelopment Agreement doc(Staff Report- V 10).doc