TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Addendum to the Purchase and Sale Agreement with Tim Bush for three acres at the Salem Business Campus
Ward(s): Ward 3
Councilor(s): Councilor Phillips
Neighborhood(s): Southeast Mill Creek Association
Result Area(s): Strong and Diverse Economy
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ISSUE:
Shall the City Council authorize the City Manager to execute the attached addendum to the Purchase and Sale Agreement with Tim Bush for three acres at the Salem Business Campus, extending the closing to June 1, 2021?
RECOMMENDATION:
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Authorize the City Manager to execute the attached addendum to the Purchase and Sale Agreement with Tim Bush for 3 acres at the Salem Business Campus, extending the closing to June 1, 2021.
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SUMMARY:
On September 28, 2020, Council authorized the City Manager to execute a Purchase and Sale Agreement (Agreement) and third addendum with Tim Bush. Tim Bush, owner of Tina’s Touchups Inc., intends to purchase three acres at the Salem Business Campus for the expansion of his auto detailing business. Addendum #3 is needed to extend the due diligence and closing timelines from January 8, 2020 to June 1, 2021.
FACTS AND FINDINGS:
Extending the closing is needed to allow time for the City to complete a zone change for the property as well as record a subdivision plat. Tim Bush intends to purchase Lot 1 (Attachment 1) at the Salem Business. Lot 1 will be created following the recording of the City’s subdivision plat for the Salem Business Campus. The propsed addendum (Exhibit 2) extends the timeline for due diligence and closing from about 120 days following the executed Agreement to approximately 260 days (June 1, 2021). This includes amending the timeline related to financing, general conditions, and development conditions referenced in Section 2 of the Agreement as well as the closing timelines in Section 7.
BACKGROUND:
Extending the closing timeline does not have any anticipated budget impacts. Staff continue to receive development interest on the remaining available land at the Salem Business Campus (future Lot 6 and 8), totaling approximately 10 acres.
Annie Gorski
Economic Development Manager
Attachments:
1. Subdivision Phasing Map
2. PSA Addendum #3