Title
RESOLUTION APPROVING CONTRACT TO BUY AND SELL FRICO ERU WATER AND OPTION CREDITS TO SDM INVESTMENTS, LLC
Body
Summary and Background Information:
In May 2015, the City Council and the NIGID Board authorized the sale and assignment to SDM Investments, LLC (controlled by Jim Marshall) of 45.33 FRICO ERUs for $5,000 each with a total of $226,650 due and payable at two separate closings from SDM Investments in 2015. The first closing (20.33 ERUs for $101,650) occurred in August 2015, but the buyer did not close on the remaining 25 ERUs on December 1, 2015, as required. SDM Investments has requested that the City of Commerce City execute a new contract for the remaining 25 FRICO ERUs at $5,000 each with closing to occur by June 30, 2016. SDM Investments and a related company that controls part of the Turnberry development, BCX Development Partners Inc., has also agreed to dedicate certain land necessary for the City’s improvements to Highway 2, 112th Avenue, and Potomac Street, and to encourage the other Turnberry landowners to do the same.
Agreement between SDM Investments (Jim Marshall) and the City and the NIGID (3 parties)
NIGID will sell (and the City will assign) 25.00 FRICO ERUs to SDM Investments for $5,000 each with a total of $125,000 due and payable at a closing to occur in June 2016.
Staff Responsible (Department Head): James A. Hayes
Staff Member Presenting: James A. Hayes
Financial Impact:
City expenditure - None
NIGID Revenue:
$125,000 - sale of 25.00 ERUs in 2016
Funding Source: N/A
Staff Recommendation: Approval of Resolution 2016-38 authorizing the contract.
Suggested Motion: I move to approve Resolution 2016-38