Adopt Resolution #21-145 Approving Fourth Amendment to Purchase Agreement for Gigi's Salon and Spa Inc

This case was updated and removed from the Consent Agenda on Tuesday, May 25 to adjust the Closing Date to July 31, 2021. Many Appraisers and the Small Business Administration (SBA - Project Financing) are experiencing lengthy delays due to workload. The project appears to be on track, but is taking longer to get through the financing process than originally expected.

The purpose of this case is to consider an extension to the Closing Date in the Purchase Agreement for Gigi's Salon and Spa, Inc.. Due to the SBA requirement for an updated Phase 1 and appraisal and subsequent SBA review, an extension to the Closing Date is likely needed.  SBA is currently backlogged and it has taken more time than originally thought to clear their processes.  All site plan, plat and other land use application requirements have been approved. Financing has been approved locally, just awaiting final approvals. Staff is confident that closing on financing will occur, which will allow the project to pay development fees, which will allow the plat to be recorded in turn opening up the final closing on the land/site purchase.  In addition, the Purchase Price needs to be updated to reflect the actual acreage.  The new purchase price is $247,324 (61,831 SF X $4.00). Staff is asking the City Council to consider approval of the attached Fourth Amendment to Purchase Agreement to give flexibility to the closing date.

N/a

The key terms of the Fourth Amendment to Purchase Agreement include: 

1. CLOSING. The Buyer and Seller desire to extend the Closing Date from May 31, 2021 to June 30, 2021. 
2. SALE OF PROPERTY. The Property was platted, resulting in a new legal description of Lot 1, Block 1, Gigi Addition. 
3. PURCHASE PRICE.  The purchase price for the Property is revised to $247,324 based on the dimensions of the platted parcel. This calculation is based on $4.00 per usable square foot on 1.42 acres (61,831 square feet).

Alternatives:
1) Adopt Resolution #21-145 Approving Fourth Amendment to Purchase Agreement for Gigi's Salon and Spa Inc (as presented with a Closing Date of July 31, 2021)
2) Adopt Resolution #21-145 Approving Fourth Amendment to Purchase Agreement for Gigi's Salon and Spa Inc (with changes)
3) Something else

This action is being covered under normal staff duties.

Staff recommends adoption of Resolution #21-145 approving Fourth Amendment to Purchase Agreement for Gigi's Salon and Spa Inc. (as presented).

Motion to adopt Resolution #21-145 approving Fourth Amendment to Purchase Agreement for Gigi's Salon and Spa Inc (as presented); subject to City Attorney review.