Title
RESOLUTION APPROVING AGREEMENTS RELATING TO THE PURCHASE AND SALE OF TURNBERRY PARCEL O
Body
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.
Purchase and Sale Agreement between City of Commerce City, Northern Infrastructure GID, and Catellus CC Note, LLC (3 parties):
At closing, Catellus will sell Parcel O to the City of Commerce City for a total of $1,300,000 cash from the City and the execution of three related agreements (below). This agreement is based on the appraised value and the commitment from Catellus to construct the water line to the intersection of 112th Avenue and Potomac Street by April 1, 2016.
Agreement 1: Option Agreement for Purchase of ERUs (Exhibit B): NIGID will provide an option to sell, and the City will assign, 200 FRICO ...
Click here for full text