Council grants 60-day extension to Rebound Real Estate on 2.69-acre parcel amid competing interest

The Faribault City Council approved a 60-day extension to a preliminary development agreement between the city and Rebound Real Estate LLC for a 2.69-acre city-owned parcel at 105 Riverchase Court.

Director David Wenberg said the original agreement gave both parties one year to negotiate, that Rebound previously received a 90-day extension and that Rebound requested a further 60 days so it could finalize a purchase proposal. Wenberg said the city is aware of another developer interested in the site and that Minnesota law does not require a competitive bid process to dispose of municipal property.

Matt Ganter, representing Rebound, told council the developer has reduced per-unit costs in recent months and expects to have a proposal ready within 30 days but asked for 60 days to be safe. In council remarks, one member said they would vote against another extension because the property has been under agreement for an extended time; another member moved to approve the 60-day extension and the motion received a second. During roll call a vote in favor carried; one councilor said they would vote nay but the motion passed overall.

Staff said that if the council did not approve the extension the city would entertain proposals from other interested developers immediately. The extension preserves Rebound’s exclusive right to finalize terms for 60 days; staff and Rebound will return with any finalized agreement for council consideration.