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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 8.2 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessMarch 16, 2015Jeremy Barnhart, Deputy Director, CODD <br />Item Description Reviewed by <br /> <br />Sale of Lot 1, Block 2, Natures Edge Business Cal Portner, City Administrator <br />Center (Morrell) <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Respond to purchase agreement received for Lot 1, Block 2, Natures Edge Business Center (NEBC <br />{Scott Morrell}). <br /> <br />Background/Discussion <br /> <br />The EDA is expected to provide a recommendation, after their meeting on March 16, 2015. This <br />recommendation will be provided verbally. <br /> <br />The city has received a purchase agreement to purchase Lot 1, Block 2, NEBC from Scott Morrell. <br /> <br />The purchase agreement proposes the purchase of the lot adjacent to Morrell Trucking for the asking <br />price of $2 per square foot. Mr. Morrell proposes $15,000 in earnest money. <br /> <br />Mr. Morrell proposes closing by November 19, 2015, though it is anticipated closing would occur sooner. <br />The contingency date is May 19, 2015, which anticipates late March/early April subsidy and land use <br />applications. Contingencies include: environmental testing, land use approvals (rezoning, site plan/ <br />Conditional Use Permit approval), and tax abatement. It is not known how much, or for what purpose <br />tax abatement is sought. <br /> <br />Analysis <br />The agreement proposes the sale of the lot for the previously directed asking price. While the earnest <br />money is consistent with past practice, it is lower that the recommended 10 percent. <br /> <br />While not a lot is known about the proposed development, in the context of a land sale, the sale of land <br />at the asking price, subject to future land use approvals seems consistent with the goals and objectives of <br />the city and its economic development endeavors. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> <br /> <br /> <br />Purchase agreement (to be distributed at the meeting) <br /> <br /> <br />