Approve and Execute a Purchase Agreement for City Owned Property Located at 14280 Azurite Street NW.

Purpose of Case
Approve and Execute a Purchase Agreement for City Owned Property Located at 14280 Azurite Street NW.

NOTE: Staff expects the closing of this land sale to take place on July 17.

History of Case
The Council reviewed this case on March 26, 2013; at which time the Council approved the sale of the Subject Property for $410,000 and directed Staff to negotiate and draft a Purchase Agreement with the buyer (Diamond Graphics).  The Purchase Agreement included in this case is consistent with the terms and conditions discussed by the Council in March.

Background Information
The City owns property located at 14280 Azurite Street NW ("Subject Property").  The Subject property is 4.8 acres in size, is located on the north side of Bunker Lake Boulevard adjacent to MultiSource Manufacturing and Diamond Graphics.  The Subject Property is zoned Employment 1 (E1) and is available for sale.

The City received an inquiry from a Diamond Graphics, Inc. regarding the Subject Property in early January 2013.  Staff met with said prospect on January 11, 2013 to discuss the Subject Property.  Subsequent to meeting with Diamond Graphics representatives, Staff ordered a market appraisal on the Subject Property.  Staff contacted the prospect on February 15, 2013 indicating the City's position and the result of the market appraisal ($420,000 valuation).

Diamond Graphics, Inc. made an offer to purchase the Subject Property on February 28, 2013.  The City Council reviewed said offer on March 12, 2013; at which time, the Council proposed a counter offer.  On March 18, 2013 the City received correspondence from Diamond Graphics indicating they agreed to a sale price of $410,000 to purchase the Subject Property.

On March 26, 2013, the Council approved the sale of the Subject Property for $410,000 and directed Staff to negotiate and draft a Purchase Agreement with the buyer (Diamond Graphics).  An ordinance was adopted to sell the Subject Property on April 9, 2013.
 

 NA

Use of Proceeds:
The Subject Property is located in former TIF District 10; and was purchased with proceeds from TIF District 1.  Both TIF Districts 10 and 1 are now decertified.  However, because the Subject Property was purchased with funds from TIF District 1, all proceeds must be applied to eligible TIF expenses.  For example, roads, utilities, demolition or land acquisition. 

TIF district 1 and 10 are sub-districts located within a larger umbrella TIF 'Development' district, known as a Project Area.  The $410,000 in proceeds can be spent within the approved Project Area.  In summary, the Project Area is located south of Alpine Drive across the entire City.

The Council does not need to make a decision on how to use proceeds from this transaction now.  However, Staff would like to identify options:

• New Industrial Park
• Armstrong Boulevard/Highway 10 Interchange

Approve Purchase Agreement for City Owned Property Located at 14280 Azurite Street NW

NA

Approve Purchase Agreement for City Owned Property Located at 14280 Azurite Street NW