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2016.05.17 EDA Meeting Packet (Special)AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • SPECIAL MEETING • TUESDAY, MAY 17, 2016 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS Call to order * 2. Roll call * 3. Approval of minutes from the May 3, 2016 regular meeting 4. Consider tentative acceptance of proposal and authorizing an option agreement with Tollberg Homes for a lot at 3122 Douglas Drive North 5. Other business * 6. Adjournment * *Items for which no materials are included in the packet Minutes of the Crystal Economic Development Authority Regular Meeting May 3, 2016 President Peak called the regular meeting of the Crystal Economic Development Authority to order at 6:45 p.m. Upon call of the roll, the following members were present: Jim Adams, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Laura Libby, Olga Parsons and Casey Peak. The following staff members were present: Anne Norris, Executive Director; Dan Olson, City Planner; and Troy Gilchrist, City Attorney. Motion by Commissioner Kolb (Adams) to approve the minutes of the March 15, 2016 special meeting and work session. Motion carried. Dan Olson presented a proposal from Yorway Custom Home Builders to purchase the lot at 4901 Vera Cruz Avenue North and build a new house. Motion by Commissioner Parsons (Adams) to tentatively accept the proposal from Yorway Custom Home Builders for 4901 Vera Cruz Avenue North. There was no other business. Motion by Commissioner Deshler (Dahl) to adjourn the meeting. The meeting adjourned at 6:53 p.m. ATTEST: Olga Parsons, Vice President Casey Peak, President Motion carried. Motion carried. CEDA STAFF REPORT 3122 Douglas Drive North Lot option proposal from Tollberg Homes FROM: Dan Olson, City Planner DATE: May 13, 2016 TO: Anne Norris, Executive Director (for May 17 EDA meeting) SUBJECT: Consider tentative acceptance of proposal and authorize an Option Agreement with Tollberg Homes for the lot at 3122 Douglas Drive North Tollberg Homes has submitted a proposal to option the lot at 3122 Douglas Drive North. The option duration would be 6 months for $500 and is renewable for another 6 months for another $500. The lot price would be $55,000. Tollberg Homes is a state -licensed residential building contractor with no enforcement actions. Attached are an aerial photo, builder's proposal form, and preliminary site and house plan for a split entry home with an attached three car garage. The house would have approximately 1,200 finished square feet on the main level with an open living -dining -kitchen area, three bedrooms and two bathrooms. It would also have unfinished square footage on the lower level, with an option to have it finished with additional bedrooms, a bathroom, laundry room or family room. The builder does not yet have a buyer for the house. If the EDA gives tentative acceptance of the proposal, then the required public hearing would be scheduled if Tollberg decides to exercise the option. REQUESTED EDA ACTION: EDA give tentative approval of the option proposal and authorize an Option Agreement with Tollberg Homes for the EDA lot at 3122 Douglas Drive North. Page 1 of 1 1 y Yr r 7 , , .— d - Id A 4 ,y _ _ �f I i,11� R ' ��` S lam•• - � �r Tie - g. PROPOSALFORM PROPOSAL TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL 3122 DOUGLAS DRIVE NORTH CHECK ONE: BUILDER OFFERS $55,000 TO PURCHASE THIS LOT BUILDER OFFERS $500 FOR A SIX-MONTH OPTION TO PURCHASE THIS LOT FOR $55,000 This proposal is not a purchase agreement or other binding contract. At this time, the Builder is submitting a proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines, or is requesting a six-month option for same. If a builder's proposal is tentatively accepted by the EDA board, then EDA staff would work with the Builder to determine the specific house plan and present it at the next EDA meeting. If the EDA board gives final approval at that time, the Builder would sign a Purchase & Redevelopment Agreement and provide $2,000 earnest money for the lot. Only after such an Agreement is signed would a binding contract exist between the EDA and the Builder. Builders may purchase a 6 -month option on a lot for $500, renewable for an additional 6 months for an additional $500. The option provides the builder with exclusive rights to purchase the lot and build a house subject to the normal EDA process, requirements and guidelines. As a condition of the option, the builder must list the lot with a to -be -built house on the MLS for the duration of the option. The number of options is limited: No builder may have options on more than 10% of the EDA's lots, and no more than 50% of the EDA's lots may be under option at any time. BUILDER: (Builder is required to be a Residential Building Contractor licensed by the State of Minnesota.) Name: / 0 /%4z1_1 14 Tel (1): 7s _ . LO37 Tel (2): State License Number: h 5T iS Fax: 7� 3 Y,� / ` 5-6 Address: I LI) V 11- City/State/Zip: - 3� Email: ` Signature Date REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION: Attach one representative example of a house you would plan to build on this lot if your proposal is selected. It does not need to show exactly how it would be placed on the lot; it just needs to show the approximate size, quality and features you would anticipate a new house would have on this lot. A specific house plan would be determined after a proposal is tentatively accepted by the EDA. The EDA will only sell lots to builders who have experience in house construction in Minnesota. Please list the addresses of three houses you have built in Minnesota within the last five years, or attach other evidence of qualification for review by the EDA: House #1: S 7/3— Rc taL Al House #2: - -- House #3: SUBMIT PROPOSAL TO: Attn: Dan Olson, Crystal EDA, 4141 Douglas Dr N, Crystal MN 55422 TEL: 763.531.1142 FAX: 763.531.1188 dan.olson cr stalmn. ov PROPOSALS MAY BE SUBMITTED BY HAND DELIVERY, U.S. MAIL, FAX, OR EMAIL (.pdf format). PROPOSALS MAY BE SUBMITTED AT ANY TIME AND WILL BE CONSIDERED ON A "FIRST COME, FIRST SERVED" BASIS UNLESS THE LOT HAS BEEN OPTIONED BY ANOTHER BUILDER. 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