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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 08/12/2020
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding approval of a loan to buy land on County 24th Street between Avenues E and F for a proposed community park with a proposed police and fire station. (Monica Castro, Finance Director)
SUMMARY:
Background
When the City Council passed the development agreement with Comite de Bien Estar, Inc., ("Comite"), the City Council approved the purchase of approximately 20 acres of land on 24th Street between Avenues E and F. Under the development agreement, the city will acquire the land at Comite's price to exercise its option to purchase with Border Ranches, L.L.C. Recent sales of land in the area, together with recent appraisals in the area, indicate that this price is either market or below market.
When the City Council passed the development agreement with Comite de Bien Estar, Inc., ("Comite"), the City Council approved the purchase of approximately 20 acres of land on 24th Street between Avenues E and F. Under the development agreement, the city will acquire the land at Comite's price to exercise its option to purchase with Border Ranches, L.L.C. Recent sales of land in the area, together with recent appraisals in the area, indicate that this price is either market or below market.
Terms of Loan Proposal Submitted for Approval
The Finance Director has negotiated a proposed loan with 1st Bank Yuma. The Financing Proposal (also called a term sheet) offers:
*a loan of $538,920.00
*for five (5) years
*at a rate of 3.80% interest
The remainder of the funds necessary to purchase the subject property will come from development impact fees. Staff has attached the July 30, 2020, Financing Proposal for the full details.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE A LOAN FROM 1ST BANK YUMA PER THE FINANCING PROPOSAL DATED JULY 30, 2020, TO BUY THE LAND DESCRIBED AS APN 227-15-025, YUMA COUNTY, ARIZONA; AND
I MOVE TO AUTHORIZE AND DIRECT STAFF TO EXECUTE SUCH DOCUMENTS AS MAY BE NEEDED OR NECESSARY TO EFFECTUATE SAID LOAN, SUBJECT TO THE APPROVAL OF THE CITY ATTORNEY.
I MOVE TO AUTHORIZE AND DIRECT STAFF TO EXECUTE SUCH DOCUMENTS AS MAY BE NEEDED OR NECESSARY TO EFFECTUATE SAID LOAN, SUBJECT TO THE APPROVAL OF THE CITY ATTORNEY.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY DEVELOPOER IMPACT FEES
- TOTAL:
- $728,560.00
- BUDGETED AMOUNT:
- $680,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 806-860-90015.145 $1,180,000
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The estimated fiscal impact for this loan is $728,560.00, includes $718,560.00 for the purchase of the land and $10,000.00 for closing costs and related expenditures. We budgeted $680,000.00 for the purchase of the parkland. There are sufficient funds in the impact fees account 806-860-90015.45 to cover the shortage of $48,560.00.