EDC 05-21-2013 - Laserfiche WebLink

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EDC Meeting Agenda May 21, 2013 Page 2 Land Price: Pulte has agreed to pay $2,309,650 for the site, which is approximately 27 acres. Because there is additional environmental remediation to be done and possibly additional soil (beyond what the City has already imported),the parties have agreed to escrow $1,000,000 at closing. These funds would be available for Pulte to use for environmental work/soil import and any remaining funds would be distributed to the City. At a minimum,the City would receive $1,309,650 for the land, which is consistent with a third- party appraisal completed for the City in January of this year. The purchase price will be adjusted based on a two-part closing as described below. Pulte will pay cash for the land as opposed to financing the transaction with a lender. It is also important to keep in mind that the net land price reflects the fact that Pulte is paying for and installing the public improvements. These are costs that Pulte will build into the pricing of their finished lots and thus impacts what they can pay for the raw land. Attachment 3 is a short analysis that shows what the developer's anticipated costs are relative to the purchase price with the City. Phasing: Pulte will take the site down in two phases: Phase 1: August 15, 2013 or 30 days after all City approvals, but not later than December 31, 2013. Phase 2: July 1, 2014. The purpose of the phased approach is to make sure that Pulte completes the site work and starts some construction on a timely basis. Public As mentioned above, Pulte will install and pay for all of the public Improvements: improvements. These include streets, curb and gutter, sanitary sewer, storm sewer,water mains, sidewalks and trails. The preliminary cost estimate is $2,282,800. Timing: Pulte will start the initial site work(including remediation)this fall; and install about half the public improvements. They will start construction of model homes by November 15, 2013 and have all units (including townhomes) finished by December 31, 2018.