Approval of the Letter of Intent and authorization to enter into a Purchase Agreement to acquire Lots 14 and 19 of Ballpark Village-Wood Corporate Campus.
 

ADOPT RESOLUTION NO. 2021-2187 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)

The purchase price for the property is $4,400,000.  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 $20,000.  The City is requesting a budget transfer of $4,420,000 from the unallocated General Fund beginning balance to provide the required funds to proceed with the acquisition.
 

The City recently determined that based upon the recent sales and development within the Ballpark Village-Wood Corporate Campus, it would be in the City’s best interest to invest in the remaining lots in close proximity to the Goodyear Ballpark.   Specifically in this case we have reached out to Communities Southwest as the owner of Lots 14 and 19 to determine if they were interested in selling the lots to the City.  The first property is Lot 14, which approximately 49,052 square feet (1.13 Acres) and is located at the southeast corner of Goodyear Boulevard and Ballpark Way.  The second property is Lot 19, which is approximately 219,400 square foot (5.04 Acre) and located at the southeast corner of Festival Way and Ballpark Way.  Communities Southwest has agreed to sell the two lots for $4,400,000, which equates to approximately $16.39 per square foot.   The negotiated price includes Communities Southwest’s rights to the sales tax rebates, the land/swap deed reversionary rights and the right to control the use restriction for Lot 15, which currently limits the use to a hotel.
 
Prior to negotiating the purchase of the properties from Communities Southwest, staff researched available comparable sales, considered the unique locations of the lots, as well as the benefits to the City of obtaining the rights to the sales tax rebates, the land/swap deed reversionary rights and control of the use restriction on Lot 15 of Ballpark Village-Wood Corporate Campus. 
 

Due to the locations of these two properties, the City believes they are unique and will provide the City with future opportunities to partner with end-users that will enhance the Goodyear Ballpark facility and/or may be utilized for future City needs.   This transaction will also benefit the City by removing any existing rights for the owner of these properties to request lot exchanges for the City’s existing parking parcels, provides the City with control of the use restriction that is currently in place on Lot 15, and will eliminate any requirement for the City to pay any tax rebates on the properties.