TO: Mayor and City Council
THROUGH: Kristin Retherford, City Manager
FROM: Norm Wright, Interim Urban Development Department Director
SUBJECT:
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Amendment to Purchase and Sale Agreement with Chans LLC for disposition of surplus City property located at 2793-2797 12th Street SE
Ward(s): 2
Councilor(s): Andersen
Neighborhood(s): SCAN and Morningside
Result Area(s): Good Governance; Strong and Diverse Economy; Welcoming and Livable Community
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SUMMARY:
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On August 23, 2021, Council authorized the City Manager to enter into an agreement (Agreement) (Attachment 1) to sell surplus City property located at 2793-2797 12th Street SE (Property) to Chans LLC (Kresal Chan, Manager) (Purchaser). As a condition of the sale, Purchaser was required to complete previously approved site improvements or submit an application for revised improvements by April 10, 2022. Seller was not able to meet the required condition and has asked to amend the Agreement to allow for additional time to complete the improvements.
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ISSUE:
Shall City Council authorize the City Manager to execute the attached amendment to the Purchase and Sale Agreement with Chans LLC for the disposition of surplus City property located at 2793-2797 12th Street SE?
RECOMMENDATION:
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Authorize the City Manager to execute the attached amendment to the Purchase and Sale Agreement with Chans LLC for the disposition of surplus City property located at 2793-2797 12th Street SE.
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FACTS AND FINDINGS:
Staff and Purchaser have come to terms on a proposed amendment (Amendment) (Attachment 2) to the Agreement. The Amendment offers two options for Purchaser to pursue: extended timeline for construction of approved site improvements, or secondary timeline for submittal and construction of alternative improvements. Key terms of the Amendment are below.
Option 1 Extended timeline for approved site improvements
Permit Submittal Date: January 1, 2023
Construction Start Date: July 1, 2023
Completion Date: January 1, 2024
Option 2 Submit for approval of alternate improvements
Land Use Submittal Date: November 1, 2022
Permit Approval Date: April 1, 2023
Permit Application
Submittal Date: October 1, 2023
Construction Start Date: April 1, 2024
Completion Date: October 1, 2024
Failure to complete either option in the specified time will result in Purchaser forfeiting its $30,000 performance bond.
BACKGROUND:
The Property was acquired as part of the 12th Street SE Improvement Project on January 31, 2018. Funding for this acquisition came from the 2008 Streets and Bridges Bond.
Clint Dameron
Real Property Services Manager
Attachments:
1. Agreement
2. Amendment