LEGISLATIVE ACTION ITEM
SPONSOR: Ashton J. Hayward, III, Mayor
SUBJECT:
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PROPOSED PURCHASE AND SALE AGREEMENT PARCELS I, IA AND III INCLUDED IN THE SEVILLE HARBOUR LEASE
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RECOMMENDATION:
recommendation
That City Council approve the Purchase and Sale Agreement submitted by Seville Harbour, Inc. to the City for the purchase of Parcels I, IA and III included in the Seville Harbour lease subject to City Council adoption of Proposed Ordinance 28-18 on final reading. Further, that City Council authorize the Mayor to execute all agreements and take all action necessary to complete the transaction.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Seville Harbour, Inc. has requested that City Council approve the Purchase and Sale Agreement for Parcels I, IA and III included in the Seville Harbour Lease for the purchase price of $725,000. The sales price is based on the current appraised value of the property based on the June 6, 2018 appraisal by Fruitticher Lowery Appraisal Group. The property is currently leased by the purchaser and will be sold “as is”.
The sales contract and closing documents require that the purchaser begin construction on a $2,000,000 breakwater and other improvements no later than December 31, 2021 and that such breakwater and other improvements must be completed by December 31, 2023. The purchaser is entitled to assign the sales contract to an entity owned or controlled by Ray Russenberger. This sale is being proposed utilizing the direct negotiation option as provided for in City Council’s Policy for Disposition of City Owned Real Property.
John Daniel of Beggs & Lane RLLP will be present to review the terms of the proposed sales contract.
PRIOR ACTION:
September 18, 1985 - The City initially entered into the 30 year Pitt Slip Lease for Parcel IA, I and III and there have been several amendments to the original lease since that time and several assignments related thereto.
FUNDING:
N/A
FINANCIAL IMPACT:
All revenue from the sale of the property when received will be placed in the City’s Housing Initiatives Fund.
CITY ATTORNEY REVIEW: Yes
10/2/2018
STAFF CONTACT:
Keith Wilkins, City Administrator
ATTACHMENTS:
1) Pitt Slip Parcels I, IA and III Appraisal dated June 6, 2018
2) Purchase and Sale Agreement - to be distributed
PRESENTATION: Yes end