5.0. 6.0. 7.0. 8.0. 9.0. 10.0. EDSR 09-21-1998

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Special EDA Agenda Memo September 21, 1998 Page 4 • for various activities, but the City Council will need to take final action on the EDA recommendation. Recommendation Staff is recommending that the EDA request the City Council to authorize use of the development fund as a source of funds for the West Business Park Project - in an amount not to exceed $390,000. 8. Consider Execution of Purchase Agreement with Tony Emmerich for West Business Park Project The EDA has an exclusive marketing agreement with Tony Emmerich guaranteeing a purchase price of$1.00 per square foot plus any additional taxes prorated to the subdivided parcel to the date of closing on that parcel. This breaks down in the following manner: • 6 acres equals 261,360 square feet Land price $261,360.00 • Prorated share of real estate taxes $ 13,488.31 • Additional fees to close $ 4,125.96 Total: $278,974.27 • The line item indicated as "additional fees to close" are broker fees. Payment of this broker fee was requested by the developer as part of the overall incentive package. Payment of this $15,000 broker fee is as follows: • EDA payment $ 4,125.96 • Tony Emmerich payment $10,874.04 Part of the exclusive agreement with Tony Emmerich is that he will pay up to a total 4 percent broker fees to any brokers involved in the land sale transaction. The proposed purchase agreement would have one contingency that is execution of a signed development agreement between the EDA and the developer. Recommendation Staff is recommending execution of a purchase agreement with Country Ridge, Inc.,Anthony J. Emmerich, President, for the purchase of a 6 acre parcel in the West Business Park at a total purchase price of$278,974.27, final sale contingent upon execution of • a development agreement between the EDA and the developer.