6. HRSR 10-02-2006 - Laserfiche WebLink

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ITEM ~ 6. t~ver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Developmentl~%~~ DATE: October 2, 2006 SUBJECT: Consider Directing Staff to Proceed with the Acquisition of Properties Described as 716 and 720 Main Street Attachments Draft Purchase Agreement Memo from Attorney Mary Ippel, Briggs & Morgan, dated August 29, 2006. Background At its June 26, 2006 meeting the HRA directed staff to commission an appraisal of the buildings and in August the HRA authorized staff to begin negotiations for purchase agreement terms upon the appraisal outcome at or below the seller's asking price,. The appraisal was completed in late July and the values supported the offer of $720,000. Staff has been in negotiations with the seller since August. Staff reports that we are close to reaching general agreement on purchase terms as provided in the attached draft purchase agreement, contingent upon the HRA's approval In summary the agreement proposes that the HRA purchase the properties in the amount of $720,000 under a 5-year contract for deed at 6% interest, with a down payment of $216,000 to be funded by existing HRA reserves and semi-annual capital payments (to be offset by lease revenue). Under the agreement the HRA accepts the existing lease with O'Reilly Automotive. Issue State statutes require that prior to the HRA's undertaking of property acquisition that a redevelopment plan is prepared and approved by the City Council. The attached memo dated August 29, 2006 from Attorney Mary Ippel at Briggs & Morgan outlines the process necessary precedent to the HRA's purchase of property for redevelopment purposes.