March 25, 2019 05:23 PM
(ABC 6 News) -- Earlier this year, an Abu Dhabi-based developer decided not to move forward with a $230 million dollar development in downtown Rochester, known as the Bloom project. It would have included two towers of space for senior living, condominiums and a luxury hotel.
The city of Rochester spent nearly 4 years preparing for the project, and they remain optimistic they will find partners to work with on the 2.5-acre riverfront property, but they want to make sure their bases are covered.
At Monday's Committee of the Whole Meeting at the Olmsted County Government Center, a city employee addressed the council with the city's proposal for negotiating future development projects.
After reviewing policies other cities have in place, city staff decided to create several guidelines when working with potential developers.
One of the guidelines includes the creation of a negotiation period. For a more modest project, around the $25 million dollar price range, a 12 month negotiating period would be recommended. A 24 month negotiating period was recommended for larger projects, but the city said both negotiation periods could be extended based on a mutual agreement between the city and the developer.
Another guideline would involve a deposit from the developer to the city to cover out-of-pocket expenses. $10,000 was recommended by city staff.
City staff also recommended a purchase option deposit that would be 5% of the development property's current year-assessed evaluation, but would not exceed $200,000. It would be applied to the property purchase price.
The city council decided each guideline was reasonable and granted city staff permission to move forward with them.
Updated: March 25, 2019 05:23 PM
Created: March 25, 2019 05:22 PM
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