4.9. SR 04-20-2015 - Laserfiche WebLink

Home Browse Search

�j Elk = - Request for Action River To Item Number Mayor and City Council 4.9 Agenda Section Meeting Date Prepared by Consent Aril 20, 2015 Amanda Othoudt, EDD Item Description Reviewed by Contingent Sale of Lots 1 and 2, Block 2, Natures Jeremy Barnhart, Deputy Director, CODD Edge Business Center II to Envision Companies Reviewed by dba Sportech, Inc. Cal Portner, City Administrator Action Requested Approve, by motion, the purchase agreement for the contingent sale of Lots 1 and 2,Block 2, Natures Edge Business Center II to Envision Companies, dba Sportech, Inc. Background/Discussion At their special meeting on March 13, 2015, the EDA recommended approval of a purchase agreement to sell Lots 1 and 2, Block 2, NEBCII to Envision Companies, dba Sportech, Inc. The purchase agreement proposes the sale of the lots at the appraised value of$1,288,590. Envision Companies will pay $1 at closing and the City Development Fund will be reimbursed through the abatement of city taxes collected on the property for the full appraised value. This is similar to the structured agreement when Sportech purchased the lot in Northstar Business Park in 2012. Acceptance of the purchase agreement does not constitute approval of the business subsidy application. In exchange for selling the land for one dollar, Sportech proposes to construct an industrial building with a value of$3.8 million, provide a certain number of jobs, and maintain operations at the property for at least 10 years. A subsidiary of the purchase agreement is a Promissory Note and a mortgage agreement. These documents are intended to secure the city's interests as suggested by the EDA's attorney, by guaranteeing satisfaction of the items above. The note will be payable in semiannual payments each year during the abatement period,until the three requirements are satisfied. A mortgage agreement will provide the security for the city. The land and improvements, fixtures and personal property, and leases and rents will be secured by the city up until sale-leaseback by a third party real estate holding company. The mortgage will be satisfied and released upon completion of the three events. The City Development Fund financed, in part, the improvements serving the subject property. It is intended that tax abatement be used to collect taxes generated by the property and be diverted to the development fund over the term of the abatement,usually 10-15 years. It is expected that the county will p 0 W I R E a 0 NA UREJ