HomeMy WebLinkAboutA003 - Resolution approving amendment to Purchase Agreement with Keystone Equity Group in conjunction with the sale of Lots 9, 13, 14, 16, 23, and 26 in the Baker SubdivisionITEM #:3
DATE:09-29-26
DEPT:P&H
SUBJECT:AMENDMENT TO PURCHASE AGREEMENT WITH KEYSTONE EQUITY
GROUP IN CONJUNCTION WITH SALE OF LOTS 9, 13, 14, 16, 23, AND 26
IN BAKER SUBDIVISION
COUNCIL ACTION FORM
BACKGROUND:
At the May 26, 2026, City Council meeting, the City Council adopted a resolution authorizing
staff to proceed with the sale of six (6) of the twelve (12) "market-rate" single-family Lots (9,
13, 14, 16, 23, and 26) in the Baker Subdivision to Keystone Equity Group. The Legal
Department prepared the Purchase Agreement, which included a total purchase amount of
$331,225 and an earnest deposit of $16,566.25. The agreement also included the conditions
and requirements for purchasing the six lots, with a closing date of October 1, 2026.
Staff recently received a request from Keystone Equity Group to split the purchase in half over
two months (three lots in October and three lots in November). In staff's opinion, this
modification would be challenging because the legal documents necessary for the transaction
were prepared with the understanding that all six lots would be conveyed together. Significant
effort would be involved in modifying the documents to divide the purchase into two parts. As
an alternative, staff has offered to support extending the closing date for all six lots
from October 1 to on or before October 15, 2026. Keystone Equity Group has indicated
that this alternative approach is acceptable.
Attached for City Council review and approval is an amendment to the agreement prepared by
the Legal Department to extend the closing date to on or before October 15, 2026.
ALTERNATIVES:
1. Approve an Amendment to the Purchase Agreement with Keystone Equity Group to
extend the closing date for the purchase of Lots 9, 13, 14, 16, 23, and 26 in the Baker
Subdivision to on or before October 15, 2026, with all other terms and conditions of the
sale remaining the same.
2. Approve an Amendment to the Purchase Agreement with Keystone Equity Group to
extend the closing date for the purchase of Lots 9, 13, 14, 16, 23, and 26 in the Baker
Subdivision to on or before October 15, 2026, with all other terms and conditions of the
sale remaining the same.
3. Do not approve the amendment and refer back to staff for further modifications.
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CITY MANAGER'S RECOMMENDED ACTION:
The opportunity to sell market-rate lots in the Baker Subdivision is an important priority for the
City’s affordable housing program. Creating a mixed-income subdivision with both affordable
housing for low-income families and market-rate housing aligns with the goals and priorities of
the City’s CDBG 2024-28 Five-year Consolidated Plan. The sales prices are consistent with
the minimum pricing established in the RFP. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative No. 1, as described above.
ATTACHMENT(S):
Amendment to Purchase Agreement (Keystone_Baker Subdivision).pdf
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Amendment to Purchase Agreement
THIS IS AN AMENDMENT made by and between Sellers and Buyers upon the following
terms and conditions:
1 Definitions. When used in this Amendment, unless otherwise required by the con-
text:
1.1 “Sellers” means the City of Ames, Iowa, whose mailing address is: 515 Clark
Avenue, Ames IA 50010.
1.2 “Buyers” means Keystone Equity Group, L.L.C., whose mailing address is: 5031
Timberwood Ct., West Des Moines IA 50265.
1.3 “Agreement” means the Purchase Agreement presently in force between Sellers
and Buyers, which was approved by the Ames City Council on May 26, 2026, pur-
suant to Resolution 26-347, and governs the sale by Sellers and the purchase by
Buyers of the property.
1.4 “Amendment” means this instrument as signed by the Sellers and Buyers.
1.5 “Real Property” means the real property (together with all easements and servient
estates appurtenant thereto) situated in Story County, Iowa, described as follows:
Lots 9, 13, 14, 16, 23 and 26, Baker Subdivision, Ames, Iowa.
2 Amendment. The Agreement is hereby amended by deleting therefrom the date of
October 1, 2026, in Paragraph 7 of the Agreement, and by substituting in lieu thereof
the date October 15, 2026.
3 Continued Full Force. The Agreement shall continue to have full force and effect
in accordance with the terms thereof, subject, however, to this Amendment.
IN WITNESS OF THIS AMENDMENT, Sellers and Buyers have signed their names as of the
dates below.
KEYSTONE EQUITY GROUP, L.L.C.
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 Ames City Council.
CITY OF AMES, IOWA
By: Attest:
John A. Haila, Mayor Renee Hall, City Clerk
STATE OF IOWA, COUNTY OF __________________________, SS.:
This instrument was acknowledged before me on ______________________, 2026, 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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