| ITEM #: 6. DATE: 10/25/2021 AI #:536 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVAL OF LETTER OF INTENT AND AUTHORIZATION TO ENTER INTO PURCHASE AGREEMENT FOR LOT 15, BALLPARK VILLAGE-WOOD CORPORATE CAMPUS |
| STAFF PRESENTER(S): | Roric Massey, City Attorney |
SUMMARY
Approval of the Letter of Intent and authorization to enter into a Purchase Agreement to acquire Lot 15 of Ballpark Village-Wood Corporate Campus.
Recommendation
ADOPT RESOLUTION NO. 2021-2184 APPROVING THE LETTER OF INTENT FOR ACQUISITION OF REAL PROPERTY; AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT CONSISTENT WITH THE TERMS OF THE LETTER OF INTENT; AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO TAKE ACTIONS AND EXECUTE DOCUMENTS NECESSARY TO ACQUIRE THE REAL PROPERTY; AUTHORIZING AND APPROVING THE REQUIRED BUDGET TRANSFER; AND PROVIDING FOR AN EFFECTIVE DATE. (Roric Massey, City Attorney)
FISCAL IMPACT
The purchase price for the property is $1,485,675. In addition to the purchase price, the City will responsible for paying one-half of the closing costs, which includes apportioned taxes and fees. These costs and fees are estimated at $10,000. The City is requesting a budget transfer of $1,500,000 from unallocated General Fund beginning balance to provide the required funds to proceed with the acquisition.
BACKGROUND AND PREVIOUS ACTIONS
The City recently became aware that the property located directly behind center plate at the Goodyear Ballpark (Lot 15 – Ballpark Village-Wood Corporate Campus) was placed on the market for sale. The Lot 15 Property is approximately 110,050 square feet (2.53 Acres) and is listed for $15 per square foot, which totals $1,650,750. The property has a use restriction, which limits the use to a hotel and other uses incidental to a hotel. Staff is working with the Communities Southwest who controls the use restriction to have it removed from the property. Prior to negotiating the purchase of the property from Byrd Enterprises of Arizona, staff researched available comparable sales and considered the unique location of the site, as well as the existing use restriction. The negotiation with the owner and their representative resulted in the City entering into a Letter of Intent in the amount of $13.50 per square foot, which calculates to $1,485,675.
STAFF ANALYSIS
Due to its location, the City believes this parcel is a unique property that will provide the City with future opportunities to partner with an end-user that will enhance the Goodyear Ballpark facility and/or may be utilized for future City needs.