Title
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE CITY REGARDING SALE OF REAL PROPERTY LOCATED IN VICTORY CROSSING
Body
Summary and Background Information:
When the City entered into its agreements with Kroenke Sports Enterprises (KSE), KSE agreed to purchase not less than 200-acres of additional development land, not later than ten years after the signing of the original Master Development Agreement. The tenth anniversary of the signing and approval of that agreement is October 25, 2014, and this resolution is necessary to authorize the sale of 269.041 acres of Victory Crossing property to Kroenke CC Properties, LLC (Kroenke LLC) for the purchase price of $4,304,656.00 which is equal to $16,000 an acre. In addition, as part of that sale, the City is granting Kroenke an easement over land owned by the City that borders Quebec Parkway and Highway 2, which is expected to be used as part of the Highway 2 and Quebec Improvement Project. The easement is necessary so that Kroenke can have access to its property over the City owned land and is required by the title insurance company insuring the transaction. The easement is expressly conditioned upon the Kroenke entity obtaining all required access permits from the City for any access on to the public rights of way.
In addition, the City is providing an Assignment and Bill of Sale, transferring to Kroenke LLC certain water tap credits acquired by the City from South Adams County Water and Sanitation District, which includes the financial credits defined in the Agreement for water credits on Victory Crossing dated April 10, 2013, as well as the available portable ERUs, and certain rights to augmentation water from the District.
In order to complete the transaction, the resolution authorizes and directs the Mayor to execute the necessary documents on behalf of the City, including the Deed, Grant of Conditional Easement, and Bill of Sale and Assignment of Water Rights, and any other documents may reasonably and necessarily be required in order to complete the transaction.
The closing is scheduled for Friday, October 24, 2014, and the title company will only transfer the deed and other related documents to Kroenke LLC after the City has confirmed receipt of the purchase price into the City's designated account.
Staff Responsible (Department Head): Chris Cramer, Community Development Director
Staff Member Presenting: Bob Gehler, City Attorney
Financial Impact: $4,304,656
Funding Source: N/A
Staff Recommendation: Approval
Alternatives:
Denial. However, this would not allow the sale of the property consistent with the Master Development Agreement.