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RESOLUTION APPROVING CONTRACT TO BUY AND SELL FRICO ERU WATER AND OPTION CREDITS TO SDM INVESTMENTS, LLC
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Summary and Background Information:
In January, 2015, the City received an unsolicited proposal to purchase the property commonly referred to as Parcel O, Turnberry. After a series of informal discussions, the City reviewed the proposal with the City Council in an executive session.
After a series of negotiations March through May, 2015, the City Council authorized the City Manager to proceed with negotiating a purchase agreement for the property commonly referred to as Parcel O, Turnberry.
Appraisal completed by Commercial Valuation Consultants (CVC) values the property at $790,000 as of February 19, 2015. This includes a $500,000 discounting factor since water and sewer are not immediately available to the property and other properties (comps) in the area are more likely to develop sooner than the subject property, therefore increasing their value above that of Parcel O.
The City intends to utilize the property to construct the Second Creek Recreation Center and has budgeted for $57 million in improvements in the immediate area, with over $22 million of that total estimated for infrastructure outside of the recreation center facility.
The City is proposing two separate agreements which will require action by the City Council and NIGID Board of Directors. This communication has been prepared to outline the details of an agreement to assign water rights to SDM Investments, which is developing some of the lots in the Turnberry subdivision.
Agreement between SDM Investments (Jim Marshall) and the City and the NIGID (3 parties)
NIGID will sell (and the City will assign) 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.
Staff Responsible (Department Head): James A. Hayes
Staff Member Presenting: James A. Hayes
Financial Impact:
City Expenditure: None
NIGID Reven...
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