HomeMy WebLinkAbout4.3a Second Amendment to the PA - Ryan Companies Memo
TO: Economic Development Authority
Jennifer Levitt, EDA Executive Director
FROM: Jaime Mann, Assistant to the City Administrator
DATE: February 10, 2023
RE: Second Amendment to the Purchase Agreement – Ryan Companies
The City of Cottage Grove entered into a purchase agreement with Ryan Companies in February
2022 for the purchase of the vacant parcel located at 100th Street South and Jamaica Avenue
South. The vacant parcel is approximately 13 acres and the LOI includes a purchase price of
$1,840,410. The EDA approved a first amendment to the purchase agreement at the August 2022
special meeting.
Representatives of Ryan Companies, Inc. have notified the city of their request for an additional
extension of the closing date. Due to uncontrollable circumstances, they are requesting more time
to complete their project plans, secure financing, and securing an end user for the project so are
requesting an extension of their closing date.
The agreed upon extension period of six months has been accepted by both WAG Farms Trust
and by Ryan Companies. This would put the new closing date to September 5, 2023. No additional
earnest money is being requested for this extension as $35,000 of the original earnest money
became non-refundable with the First Extension to the Purchase Agreement and an additional
$20,000 in earnest money was deposited at that time.
Ryan Companies is still very engaged and active on this opportunity and would like to retain land
control as they work through some of the economic challenges that are affecting their purchasing
Economic Development Authority
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of this property. This extension acknowledges Ryan Companies’ good faith efforts and the
challenges going on in the markets right now.
Recommendation
Adopt Resolution 2023-001 consenting to the Second Amendment to the Purchase Agreement
between WAG Farms and the EDA and the Second Amendment to the Purchase Agreement
between the EDA and Ryan Companies US, Inc.
Authorize the EDA President and the City Administrator to execute the Second Amendment to
the Purchase Agreement with WAG Farms to extend the Closing Date to September 5, 2023.
Authorize the EDA President and the City Administrator to execute the Second Amendment to
the Purchase Agreement with Ryan Companies US, Inc. to extend the Closing Date to September
5, 2023.
Attachments
Resolution 2023-001
Second Amendment to the Purchase Agreement with WAG Farms
Second Amendment to the Purchase Agreement with Ryan Companies