HomeMy WebLinkAboutA021 - Resolution approving first amendment to the Land Purchase Option with Keystone Equity Group for Surplus Land at Harrison and Welbeck to Extend Final Plat DeadlineITEM #:23
DATE:12-16-25
DEPT:P&H
SUBJECT:AMENDMENT TO LAND PURCHASE OPTION WITH KEYSTONE EQUITY
GROUP FOR SURPLUS LAND AT HARRISON AND WELBECK TO EXTEND
FINAL PLAT DEADLINE
COUNCIL ACTION FORM
BACKGROUND:
O n May 27, the City Council held a public hearing to approve an option agreement with
Keystone Equity Group (KEG) for the purchase of surplus City land located west of the
intersection of Harrison Road and Welbeck Drive (see Location Map). The agreement requires
that, prior to completion of the sale of the land, a development agreement must be approved
for the construction of 12 owner-occupied homes on the property and approval of state
Workforce Housing Tax credits for the project must be obtained. In addition, the agreement
requires that the developer must complete all entitlements for development of the 12-
unit development, including Final Plat approval by December 31, 2025.
The developer has been notified by the state of approval of the state Workforce
Housing Tax Credits. Since that notice the developer has begun to prepare plans for
development of the property. As of the writing of this report, the developer has
submitted a rezoning request and Preliminary Plat for a 12-unit development. The
hearings for the project with the Planning and Zoning Commission and the City Council
are planned for January 2026.
The final step for development approval would be a final plat. Final plat approval is anticipated
in February, at which point the development agreement may be approved and the Developer
will be able to close on the purchase of the site per the original terms of the Option Agreement.
To follow the above described timeline, s taff has prepared an amendment to the Option
Agreement (attached) for City Council's consideration that extends the deadline for
Final Plat approval to February 28, 2026, approximately 60 days. The Developer is
agreeable to this timeline.
ALTERNATIVES:
1. Approve the attached amendment to the Option Agreement. Note the developer will need
to fully execute the document to allow for it to be recorded.
2. Make modifications to the timeline and approve the amendment to the Option
Agreement.
3. Deny approval of the amendment to the Option Agreement and maintain the deadline of
Final Plat approval of December 31, 2025.
1
CITY MANAGER'S RECOMMENDED ACTION:
The extension is needed to fulfill the original terms of the Option Agreement steps for
approval of a project and the sale of the property. The award of state tax credits was
delayed beyond the anticipated timeframe of notice that was contemplated with the
original option agreement causing some delay for the developer to proceed. The
developer has submitted development plans consistent with the agreement, but they
cannot be approved in the timeframe originally established the agreement. Therefore, it
is the recommendation of the City Manager that the City Council adopt Alternative 1.
ATTACHMENT(S):
Amendment to Option Agreement with Keystone.pdf
Location Map.pdf
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SITE
CHARACTERISTICS
Site Acreage –
1.8 acres
Existing Zoning –
Residential Low
Density Zone (RL)
Lot J - Bloomington
Heights West Plat 3
Conveyed to the
City of Ames in 2004
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