Title
An Ordinance approving a real estate agreement for the transfer of City property for the I-470 and View High Tax Increment Financing Plan.
(Note: First Reading by City Council on August 23, 2018.)
Body
Issue/Request:
An Ordinance approving a real estate agreement for the transfer of City property for the I-470 and View High Tax Increment Financing Plan
Key Issues:
This ordinance will approve a new real estate agreement for the sale of property owned by the City within the Paragon Star project area to allow for the sale to take place within the current calendar year.
Proposed City Council Motion:
I move for adoption of An Ordinance approving a real estate agreement for the transfer of City property for the I-470 and View High Tax Increment Financing Plan.
Background:
The City has previously entered into two real estate contracts for the sale of City property, as follows:
Prior Transaction #1 - Sports Complex Property
Purchaser: I-470 & View High CID
Land: about 64.6 acres - Lot 1, Lot 3 and Tract A (blue area less red area on attached map)
Contract Price: $288,650 for Lots 1, 3 and Tract A
Lot 4 (green area on attached map): Buyer can purchase for $128,886.00. Lot 4 is about 3.9 acres.
Prior Transaction #2 - Commercial Property for Mixed-Use Village
Purchaser: Paragon Star, LLC
Land: about 4.9 acres - Lot 2 (red area on attached map)
Contract Price: $588,958
Paragon Star (the “Developer”) has requested that the two real estate contracts be restructured so that the sale can happen within this calendar year. The sales price would be $1,006,494, which is the combined amount of the two current real estate contracts (including the Lot 4 area). The land will be transferred to the I-470 and View High Community Improvement District (CID), and the purchase price will be paid by Developer. The Lot 2 area will eventually be transferred to Developer for private development in accordance with the TIF Plan, and the remainder will stay in CID ownership for the sports complex and related public improvements.
Sale of the property this year will assist the project in moving forward. Paragon Star is willing to purchase the property for the previously agreed-upon price under the original two agreements, with the condition that a covenant in the deed will limit use of the property north of the Little Blue River to a sports complex.
Timeline:
The real estate transaction is anticipated to occur within the next few months.
Presenter
Mark Dunning, Asst. City Manger, Development Services & Communications
Recommendation
Recommendation:
Staff recommends approval of the ordinance and real estate agreement.