10.D.
City Council Meeting - DRAFT
- Meeting Date:
- 11/01/2016
- From:
- David McIntire, Community Investment Director
Information
TITLE:
Consideration and Possible Adoption of Ordinance No. 2016-37: An ordinance authorizing the Sale of City-Owned Property Near the Airport, Assessor's Parcel Number (APN) 116-61-006, through approval of a Purchase and Sale Agreement. (Purchase and Sale Agreement with Greentree Hospitality Group)
RECOMMENDED ACTION:
At the November 1, 2016, Regular Council Meeting:
1) Read Ordinance No. 2016-37 by title only for the first time
2) City Clerk reads Ordinance No. 2016-37 by title only (if approved above)
At the November 15, 2016, Regular Council Meeting:
3) Read Ordinance No. 2016-37 by title only for the final time
4) City Clerk reads Ordinance No. 2016-37 by title only (if approved above)
5) adopt Ordinance No. 2016-37
1) Read Ordinance No. 2016-37 by title only for the first time
2) City Clerk reads Ordinance No. 2016-37 by title only (if approved above)
At the November 15, 2016, Regular Council Meeting:
3) Read Ordinance No. 2016-37 by title only for the final time
4) City Clerk reads Ordinance No. 2016-37 by title only (if approved above)
5) adopt Ordinance No. 2016-37
Executive Summary:
The City has a 32 acre parcel of land currently zoned Highway Commercial in the vicinity of Flagstaff Airport. The City released a Request for Proposals seeking to identify a purchaser with the intention of generating fiscal resources for the airport, creating services to enhance the airpark, and providing jobs for the community. Greentree Hospitality Group was the successful respondent.
Financial Impact:
The sale of the property will generate over $5,500,000 which is to be used by the airport. The proposed initial use as hotel, restaurant and corporate offices will generate construction sales tax, enhanced property tax and transaction privilege tax which will include Bed, Board, and Beverage taxes although the amount anticipated has not been calculated. The 140 full time equivalent employees will generate economic impact to the community as well.
Important to note that the purchase will be in two phases:
Phase 1) 10 acres at $4.25 per square foot.
Phase 2) The balance of the property will be determined based on the final square footage of the second parcel of land.
Important to note that the purchase will be in two phases:
Phase 1) 10 acres at $4.25 per square foot.
Phase 2) The balance of the property will be determined based on the final square footage of the second parcel of land.
Connection to Council Goal and/or Regional Plan:
COUNCIL GOALS:
9) Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues
Has There Been Previous Council Decision on This:
There have not been previous City Council decisions on this topic.
Options and Alternatives:
1) Approve the Ordinance and the Purchase and Sale Agreement which will authorize the execution of the sale and the development of the property.
2) Amend and approve the Ordinance and Purchase and Sale Agreement which may require additional negotiations with the Buyer.
3) Reject the Ordinance and the Purchase and Sale Agreement and provide staff direction on whether to stop negotiations or bring back alternatives.
2) Amend and approve the Ordinance and Purchase and Sale Agreement which may require additional negotiations with the Buyer.
3) Reject the Ordinance and the Purchase and Sale Agreement and provide staff direction on whether to stop negotiations or bring back alternatives.
Background/History:
Purchasing staff posted a Request for Proposal on the City website on July 17, 2016 and advertised in the AZ Daily Sun on July 17, 2016, July 24, 2016 and July 31, 2016. Proposals were due on August 5, 2016; only one proposal was received. Greentree Hospitality Group, Inc. was the only proposer, and was determined to be responsive and responsible and contract negotiations began. The ordinance, purchase agreement and additional documents are being finalized and will be attached to the final version of the item.
Community Involvement:
Consult
Attachments
No file(s) attached.