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City of Centerville <br />Council Work Session, City Council & Closed Exec. Meeting Minutes <br />July 28, 2021 <br /> <br /> <br />Motion by Council Member Lakso, seconded by Council Member Koski to Approve Consent <br />Agenda Items 6 as Presented. Council Member King Abstained. Motion carried. <br /> <br />**This items below were moved to Item #XII prior to Adjournment of the Regular City Council <br />Meeting. <br /> <br />VIII. RECESS TO CLOSED EXECUTIVE SESSION <br /> <br />CLOSED EXECUTIVE SESSION <br /> <br />This portion of the meeting is closed pursuant to Minnesota State Statute Section 13D.05, <br />subdivision 3(c), and is permitted to determine the asking price for, and to develop or consider <br />offers or counteroffers for the sale of Block 7, Centerville <br /> <br />I. ROLL CALL <br /> <br />II. DISCUSSION <br /> <br />COUNCIL MEETING (Continued) <br /> <br />IX. RECONVENE REGULAR MEETING <br /> <br />X. OLD BUSINESS <br /> <br />1. Purchase Agreement – Block 7 – Centra Homes <br /> <br />Administrator Statz gave a brief history of development firms that have been interested in <br />developing the site, Requests for Proposals (six (6) developers and two (2) responses) and elements <br />the Planning & Zoning Commission and Council desired to see on the site, Downtown Master Plan <br />and the 2040 Comprehensive Plan elements. He stated that staff from Centra Homes and City staff <br />have been working diligently to derive an acceptable purchase agreement. <br /> <br />Administrator Statz reviewed the three (3) areas that remained to be acceptable by Centra Homes <br />and they are as follows: Two (2) Phased Project and Right of Reverter; Force Majeure Clause; <br />and Homeowner’s HOA Cost Burden. He stated that he felt that there was miscommunication <br />regarding Item #1 and clarified per Ms. Carla Dunham’s email dated July 22, 2021. Administrator <br />Statz also addressed the Right of Reverter which Centra Homes was favorable with along with a <br />Letter of Credit (LOC). He stated that this protects the City and themselves. He reported that the <br />Right of Reverter would remain in place until all upfront infrastructure improvements detailed in <br />the Developer’s Agreement. Administrator Statz reported that Centra Homes also was favorable <br />with the Force Majeure Clause being capped at 24 months as recommended by Council. He stated <br />that there were concerns of the LOC for a period of 10 years associated with the HOA would <br />protect early purchasers from carrying cost of community maintenance, etc. if Centra Homes did <br />not have the ability to complete the project. He reported that Centra Homes counter-offered that <br />they would pre-fund the HOA for a period of 4 years ($15,000/year for four (4) years = $60,000. <br />This would cover snow removal from the private street and trail, lawn care, landscaping/irrigation <br />Page 5 of 11 <br /> <br /> <br />