TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Director Urban Development Dept.
SUBJECT:
title
Purchase and Sale Agreement for the sale of real property located at 4075 and 4107 Fisher Road NE to Redwood Crossings, LLC.
Ward(s): 5
Board Member(s): Ausec
Neighborhood(s): Northgate
Result Area(s): Welcoming and Livable Community
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ISSUE:
Shall the Agency authorize the Executive Director to execute the attached Purchase and Sale Agreement with Redwood Crossings, LLC for the sale of real property located at 4075 and 4107 Fisher Road NE?
RECOMMENDATION:
recommendation
Authorize the Executive Director to execute the attached Purchase and Sale Agreement with Redwood Crossings, LLC for the sale of real property located at 4075 and 4107 Fisher Road NE.
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SUMMARY:
On February 12, 2018, the Urban Renewal Agency Board (Agency) authorized the Executive Director to 1) provide funding for the purchase of the property located at 4075 and 4107 Fisher Road NE (the “Property”), 2) authorize the purchase of the Property, and 3) accept assignment of the Purchase and Sale Agreements with Ponderosa Leasing Corp. for the Property.
The Property consists of a 19,336 square foot multi-family building and a 0.58 acre parcel of vacant land. Acquisition of the Property was completed on October 5, 2018. The total purchase price was $1,575,000 and consisted of $1,520,000 in North Gateway Urban Renewal Area funds and $55,000 in Salem Housing Authority (SHA) funds.
FACTS AND FINDINGS:
The Salem Housing Authority authorized the formation of Redwood Crossings LLC, an Oregon limited liability company, of which the SHA serves as the sole member and manager, to serve as owner of the property. The Salem Housing Authority, as sole member and manager, authorized Redwood Crossings, LLC to acquire the real property located at 4075 and 4107 Fisher Road NE.
Agency and Redwood Crossings, LLC have come to terms on a Purchase and Sale Agreement (Agreement) (Attachment 1). The key terms of the Agreement are below.
Building
• Sales Price: $531,250
($425,000 CDBG funds & $106,250 SHA funds)
• Closing Date: no later than April 10, 2019
BACKGROUND:
SHA has identified the Property as a site for affordable housing. Using a “housing first” model, the building will house and offer comprehensive services to residents.
The building is 80% complete, with the second and third floors in roughed-in condition and ready for finish work. The elevator shaft is in place, but requires installation of the elevator car and mechanicals. SHA plans to complete the finish work and convert the building to 38 single-room occupancy units with one restroom for every two units.
SHA has received $1,500,000 in Oregon Housing and Community Services Department Local Innovation and Fast Track (LIFT) grant funding. SHA plans to commence renovation of the Property in summer 2019.
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Agreement