Title
An Ordinance approving an Agreement for Release of Real Estate Purchase Option between the City of Lee's Summit and Westcott Investment Group, LLC. (Note: This item was TABLED at the Ocotober 2, 2018 Council Meeting.)
Body
Issue/Request:
An ordinance approving an Agreement for Release of Real Estate Purchase Option between the City of Lee's Summit and Westcott Investment Group, LLC.
Key Issues:
If approved, the proposed ordinance would provide for the ability of Westcott Investment Group to submit $1,405,280 payment to the City and dedicate 2 +/- acres of property to the City prior to the release of the existing Option and Development Agreement that are in place today.
Westcott Investment Group, developer of The Grove at Lee's Summit, is requesting to restructure the existing agreement between Westcott Investment Group and the City of Lee's Summit. The summary of the proposed Agreement for Release of Real Estate Purchase Option would result in the following:
* Westcott Investment Group would pay the City $1,405,280.00 (City's previous investment in the property)
* Westcott Investment Group will dedicate 2 +/- acres to City for future Fire Station or other use(s) as City determines appropriate
* After payment and dedication of property to City - City will release the existing Option Agreement and no special conditions or restrictions other than the City's customary zoning and land use regulations will apply.
Revisions for October 16th meeting
At the October 2nd meeting, the Council raised the concern that if the Agreement was approved as originally presented and the City’s right to repurchase the property is eliminated, Westcott might fail to undertake any development on the property and instead sell the property for a profit. Based on this concern, the following additional provisions have been added to the Agreement to address this concern:
Profit Sharing Provision: If any portion or all of the Property is sold after this Agreement is e...
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