TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Director Urban Development Department
SUBJECT:
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Purchase and Sale Agreement for acquisition of real property with Union Gospel Mission of Salem, Oregon
Ward(s): 1
Board Member(s): Kaser
Neighborhood(s): CANDO
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ISSUE:
Shall the Agency authorize the Executive Director to execute the attached Purchase and Sale agreement with Union Gospel Mission of Salem, Oregon for the acquisition of real property?
RECOMMENDATION:
recommendation
Authorize the Executive Director to execute the attached Purchase and Sale agreement with Union Gospel Mission of Salem, Oregon for the acquisition of real property.
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SUMMARY AND BACKGROUND:
On October 23, 2017, Union Gospel Mission of Salem, Oregon (Seller) and the Urban Renewal Agency (Buyer), executed a Real Estate Option Agreement (Attachment 1) for the purchase and sale of Seller’s property located at 345, 355, & 365 Commercial Street NE and 360 Front Street NE (Property).
FACTS AND FINDINGS:
Staff and Seller have come to terms on a proposed purchase and sale agreement (Agreement) (Attachment 2) for Buyer’s acquisition of the Property. Key terms of the Agreement are below.
Appraised Value: $1,655,000
Purchase Price: $1,575,000 (includes reduction of $80,000 to offset potential environmental concerns which are not completely known at present, but are expected to be roughly the amount of the offset)
Option Fee Credit: $77,500 credit to Buyer for Option Fee already paid to Seller
Closing: On or before Seller vacates the property
Termination: Should Seller not be successful in fundraising for new facility by July 1, 2019, Seller may terminate contract. Earnest Money shall be returned to Buyer. Earnest Money includes the $77,500 option fee and an additional payment of $157,500.
Size: 1.1 acres on four tax lots, 30,986 square feet of improvements
A Phase 1 and Phase 2 environmental review has been completed on the subject site and remediation has occurred on portions of the site. There may be additional remediation required outside of the previous remediation area. The Agency will address any remaining remediation issues when it has control of both the UGM and the adjacent Saffron sites at the time of redevelopment, depending on the type of redevelopment that occurs.
Funding for the acquisition will come from the Riverfront-Downtown Urban Renewal Area.
Clint Dameron
Real Property Services Manager
Attachments:
1. Option Agreement
2. Proposed Agreement