TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Dan Atchison, City Attorney
SUBJECT:
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Third amendment to the purchase and sale agreement between the City and GreenLight-HomeFirst, LLC for the sale of the former Salem General Hospital site.
Ward(s): Ward 1
Councilor(s): Councilor Stapleton
Neighborhood(s): Northeast Neighbors Neighborhood Association
Result Area(s): Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Welcoming and Livable Community.
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SUMMARY:
summary
GreenLight-HomeFirst, LLC (“Buyer” or “GreenLight”) needs to close on purchase of Phase I of the property by early December or it risks losing state funding for the affordable housing project. The parties agreed to pursue a partition of the property to create separate parcels for Phase I, Phase II and the Conservation Area that will be retained by the City. However, the final plat for the partition will not be ready for recording in time for closing. The proposed third amendment would allow Buyer to take ownership of the property prior to recording the final partition plat, and will convey the Conservation Area back to the City once the partition plat is recorded.
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ISSUE:
Shall the City Council authorize a third amendment to the purchase and sale agreement to allow Buyer to take ownership of the subject property prior to recording of the final plat?
RECOMMENDATION:
recommendation
Authorize a third amendment to the purchase and sale agreement to allow Buyer to take ownership of the subject property prior to recording of the final plat
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FACTS AND FINDINGS:
As noted above, GreenLight needs to close on purchase of Phase I of the property by early December or it risks losing state funding for the affordable housing project. The parties agreed to pursue a partition of the property to create separate parcels for Phase I, Phase II and the Conservation Area that will be retained by the City. However, the final plat for the partition will not be ready for recording in time for closing. The proposed third amendment would allow Buyer to take ownership of the property prior to recording the final partition plat and will convey the Conservation Area back to the City once the partition plat is recorded.
Key terms:
• GreenLight will pay $2,710,000 upon closing, set to occur no later than December 13, 2024.
• GreenLight will pay the remainder of the purchase price, $923,715, no later than December 1, 2025.
• GreenLight will record the final plat for the partition no later than December 31, 2025, and reconvey the Conservation Area to the City.
• If, for any reason, GreenLight is not able to convey the Conservation Area to the City by December 31, 2025, GreenLight will grant an easement to the City for the Conservation Area.
BACKGROUND:
The City utilized affordable housing bond proceeds to acquire this property from Salem Health for approximately $3,800,000. Proceeds of the sale of the property to GreenLight will be returned to the bond fund and may be utilized for additional project consistent with the bond.
Dan Atchison
City Attorney
Attachments:
None