Action 9.
Regular Board of Supervisors Meeting
Board of Supervisors
- Meeting Date:
- 11/14/2023
- Title:
- Sale of Casa Loma Triangle Apartments
- Submitted By:
- Sharon Gilman, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
2
NAME
of PRESENTER:
of PRESENTER:
Sharon Gilman
TITLE
of PRESENTER:
of PRESENTER:
Deputy County Administrator
Mandated Function?:
Local Mandate or Policy
Source of Mandate
or Basis for Support?:
or Basis for Support?:
ARS 35-752
Docket Number (If applicable):
Information
Agenda Item Text:
Approve the re-titling and sale transaction of the Casa Loma Triangle Apartments, located at 204 W Allen Street, Tombstone, Arizona 85638 to Desert Sage Apartments, LLC, as described by Inner Pacific Advantage Asset Management, LLC in the attached correspondence.
Background:
A letter addressed to the Industrial Development Authority (IDA) of Cochise was received by the Clerk of the Board from Mr. David Pace of Inner Pacific Advantage. Mr. Pace is the Authorized Representative to Southern Arizona Affordable Housing II, LLC, General Partner of Casa Loma Triangle Housing Limited Partnership. This letter described that the IDA held a limited partnership interest in the Casa Loma Triangle Apartments, located at 204 W Allen Street, Tombstone, Arizona, 85638. Further, this property is now under an Option Agreement for sale to Desert Sage Apartments, LLC. The letter requests the IDA, as a limited partner, provide consent for sale.
The IDA referenced is dissolved. Per A.R.S. § 35-752, upon dissolution of the IDA, all funds held by the corporation and title to its property shall vest in the municipality or county with respect to which it was organized. Therefore, since the IDA held a partial interest in the property that interest vested in the County. Therefore, the Board of Supervisors is able to make a decision on selling the property and re-titling to name the Board of Supervisors as the active entity.
The property was appraised with restricted value of $455,000.00 (per USDA Rural Development guidelines) on or about May 24, 2023. USDA RD approved allowable equity to be received by the owners in the amount of $375,000.00, and the assumption of the property's existing mortgage debt in the amount of approximately $684,175. Combined, this comprises the total sales price. The sale is anticipated to close on or around December 1, 2023. The County share of proceeds from the sale is estimated to be $90,623.66.
The IDA referenced is dissolved. Per A.R.S. § 35-752, upon dissolution of the IDA, all funds held by the corporation and title to its property shall vest in the municipality or county with respect to which it was organized. Therefore, since the IDA held a partial interest in the property that interest vested in the County. Therefore, the Board of Supervisors is able to make a decision on selling the property and re-titling to name the Board of Supervisors as the active entity.
The property was appraised with restricted value of $455,000.00 (per USDA Rural Development guidelines) on or about May 24, 2023. USDA RD approved allowable equity to be received by the owners in the amount of $375,000.00, and the assumption of the property's existing mortgage debt in the amount of approximately $684,175. Combined, this comprises the total sales price. The sale is anticipated to close on or around December 1, 2023. The County share of proceeds from the sale is estimated to be $90,623.66.
Department's Next Steps (if approved):
Provide appropriate documentation of approval of sale to Inner Pacific Advantage.
Impact of NOT Approving/Alternatives:
The sale may not process.
To BOS Staff: Document Disposition/Follow-Up:
Email approved letter to Mr. David Pace with the updated contact information for the Board of Supervisors.