TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Ratification of the Purchase and Sale Agreement Amendment with HD Fowler Co., Inc.
Ward(s): Ward 3
Councilor(s): Phillips
Neighborhood(s): Southeast Mill Creek Association
Result Area(s): Strong and Diverse Economy
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ISSUE:
Shall the City Council ratify the City Manager’s execution of the attached Purchase and Sale Agreement amendment with HD Fowler Co., Inc. for six acres of City owned land at the Salem Business Campus, extending the due diligence period and requiring that the City verify the requested use is allowed by the Salem Business Park’s conditions, covenants and restrictions (CC&Rs)?
RECOMMENDATION:
recommendation
Ratify the City Manager’s execution of the attached Purchase and Sale Agreement amendment with HD Fowler Co., Inc. (HD Fowler) for six acres of City owned land at the Salem Business Campus, extending the due diligence period and requiring that the City verify the requested use is allowed by the CC&Rs.
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SUMMARY:
On November 9, 2020, the Council authorized the City Manager to execute a Purchase and Sale Agreement (PSA) with HD Fowler Representatives for HD Fowler to purchase Lot 3 at the Salem Business Campus (Attachment 1), and on November 16, 2020, the PSA was executed. HD Fowler presented the City with a PSA amendment on January 13, 2021, and on January 20, 2021, accepted the City’s changes. HD Fowler requested that the PSA amendment be executed prior to the February 8 Council meeting, to keep the process moving. The PSA due diligence was scheduled to end on February 16. The amendment extends this to June 15, 2021, if needed.
FACTS AND FINDINGS:
The PSA amendment includes the following changes:
Section 2.1 - Conditions to Purchase: a. Revise timeframe to approve results of “General Conditions” to 90 days after mutual acceptance (November 16, 2020) or 5 days following the recording of the revised Subdivision Plat, whichever is greater, but not to exceed June 15, 2021. b. Seller to provide a pre-determination letter from the City of Salem providing verification of HD Fowler’s distribution business as an allowable business use pursuant to the current CC&Rs, OR provide an Amendment to the CCR’s to allow for general warehouse and distribution.
Section 5 - Title Objection Report: The Buyer shall have until 1/15/21 to complete.
BACKGROUND:
Headquartered in Bellevue Washington, HD Fowler, a family owned company, distributes plumbing equipment for a variety of applications. The have more than 20 branches and distribution sites in the northwest. They want to build a 15,000 SF distribution site at the Salem Business Campus to serve Mid-Valley customers. The company expects they will create up to 18 jobs with the opening of this facility, and employment will increase over time. The site is shovel ready. There are no anticipated budget impacts as a result amending the PSA.
Annie Gorski
Economic Development Manager
Attachments:
1. Subdivision Layout - Lot 3
2. PSA Amendment