HomeMy WebLinkAboutA001 - Council Action Form dated February 24, 2026ITEM #:12
DATE:02-24-26
DEPT:P&H
SUBJECT:LAND PURCHASE OPTION FOR SURPLUS LAND AT HARRISON AND
WELBECK - AMENDMENT 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 required that the developer must complete all entitlements
for development of the 12-unit project, including Final Plat approval by December 31,
2025. However, the City Council approved an amendment on December 16 extending
the deadline to February 28 as the developer completed the entitlement process.
City Council approved the preliminary plat and first reading of an ordinance rezoning the site to
RL-O-PUD on January 27, 2026. The third reading of the rezoning ordinance is on the
February 24 agenda.
City staff has been working with the developer to finalize a development agreement and final
plat documents. The final plat documents have not yet been submitted for review and
approval. The developer has requested additional time to complete all requirements
related to preparing the final plat and the development agreement.
Although staff has been working with the applicant to complete this process as
planned, the final legal documents are not yet complete. Extending the deadline for
Final Plat approval to March 31, 2026, approximately 30 days, is needed for the project
to move forward as planned. The Developer has invested substantially in seeing this project
through and is agreeable to this timeline to complete the project.
ALTERNATIVES:
1. Approve the attached amendment to the Option Agreement extending the deadline to
March 31. Note the developer will need to fully execute the Option Agreement 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 February 28, 2026.
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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. Initially, 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, and
received approvals of the preliminary plat, but the final plat and development
agreement cannot be approved in the agreement's timeframe. Therefore, it is the
recommendation of the City Manager that the City Council adopt Alternative 1, as described
above.
ATTACHMENT(S):
Location Map.pdf
Second Amendment to Option Agreement Harrison Pointe 20260218.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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S P A C E A B O V E R E S E R V E D F O R O F F I C I A L U S E
Return document to: City Clerk, 515 Clark Avenue, Ames IA 50010
Document prepared by: Mark O. Lambert, 515 Clark Ave., Ames, IA 50010 – 515-239-5146
Second Amendment to Option Agreement THIS IS A SECOND AMENDMENT made by and between the City of Ames, Iowa, and
Keystone Equity Group, L.L.C., who are the “Parties” to this Second Amendment, upon the following terms and conditions: 1 Definitions. When used in this Second Amendment, unless otherwise required by the context: 1.1 “City” means the City of Ames, Iowa, an Iowa municipal corporation. 1.2 “Buyer” means Keystone Equity Group, L.L.C., an Iowa limited liability company, with a principal office located at 5031 Timberwood Ct., West Des Moines IA 50265. 1.3 “Real Estate” means the property legally known as “Lot J. Bloomington Heights West
Plat 3, Ames, Story County, Iowa.” 1.4 “Option Agreement” means that certain Option Agreement filed June 4, 2025, as Instrument No. 2025-04201, with the Recorder of Story County, Iowa, in which Buyer is the optionee, and the City is the optionor, of the Real Estate. 1.5 “First Amendment” means that certain Amendment to Option Agreement filed December 17, 2025, as Instrument No. 2025-10669, with the Recorder of Story County, Iowa, which extended the December 31, 2025 deadline for Buyer to obtain Final Plat approval to February 28, 2026. 1.6 “Second Amendment” means this instrument as signed by the City and the Buyer. 2 Circumstances. Buyer has advised the City that Buyer needs additional time to satisfy the February 28, 2025, deadline for Final Plat approval, which was the amended deadline reset under the terms of the First Amendment. The City has determined that it is appropriate to extend the February 28, 2026, deadline a second time for an additional month, as requested by the Buyer. 3 Amendment. Paragraph 3 of the Option Agreement, as amended by the First Amendment, is amended a second time by deleting every reference to the date December 31, 2025, and inserting in lieu thereof, the date March 31, 2026.
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4 Reaffirmation & Other Contracts. This Second Amendment is solely effective with respect to the Option Agreement as enumerated in this Second Amendment. All aspects of the Option Agreement are otherwise reaffirmed in their entirety. No other agreement or obligation between City and Buyer is modified by this Second Amendment. 5 Integration. This instrument constitutes the entire agreement between the parties with respect to the subject matter thereof and supersedes all prior statements, representations, promises and agreements, oral or written. No addition to or change in the terms of this Amendment shall be binding upon the parties unless it is expressed in a writing signed by the parties. IN WITNESS OF THIS SECOND AMENDMENT, the City and Buyer have signed their names below.
KEYSTONE EQUITY GROUP, L.L.C.,
an Iowa limited liability company,
Dated , 2026. By:
STATE OF IOWA, COUNTY OF , SS.:
This instrument was acknowledged before me on , 2026, by Khoa Bui, as Manager
of Keystone Equity Group, L.L.C.
NOTARY PUBLIC
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Passed and approved on , 2026, by Resolution No. 26- adopted
by the City Council of the City of Ames, Iowa.
CITY OF AMES, IOWA
By:
John A. Haila,
Attest:
Renee Hall,
STATE OF IOWA, COUNTY OF STORY, SS.:
This instrument was acknowledged before me on , 202 , by John A. Haila
and Renee Hall, as Mayor and City Clerk, respectively, of the City of Ames, Iowa.
NOTARY PUBLIC
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