8.2. SR 03-16-2015
Request for Action
To Item Number
Mayor and City Council 8.2
Agenda Section Meeting Date Prepared by
General BusinessMarch 16, 2015Jeremy Barnhart, Deputy Director, CODD
Item Description Reviewed by
Sale of Lot 1, Block 2, Natures Edge Business Cal Portner, City Administrator
Center (Morrell)
Reviewed by
Action Requested
Respond to purchase agreement received for Lot 1, Block 2, Natures Edge Business Center (NEBC
{Scott Morrell}).
Background/Discussion
The EDA is expected to provide a recommendation, after their meeting on March 16, 2015. This
recommendation will be provided verbally.
The city has received a purchase agreement to purchase Lot 1, Block 2, NEBC from Scott Morrell.
The purchase agreement proposes the purchase of the lot adjacent to Morrell Trucking for the asking
price of $2 per square foot. Mr. Morrell proposes $15,000 in earnest money.
Mr. Morrell proposes closing by November 19, 2015, though it is anticipated closing would occur sooner.
The contingency date is May 19, 2015, which anticipates late March/early April subsidy and land use
applications. Contingencies include: environmental testing, land use approvals (rezoning, site plan/
Conditional Use Permit approval), and tax abatement. It is not known how much, or for what purpose
tax abatement is sought.
Analysis
The agreement proposes the sale of the lot for the previously directed asking price. While the earnest
money is consistent with past practice, it is lower that the recommended 10 percent.
While not a lot is known about the proposed development, in the context of a land sale, the sale of land
at the asking price, subject to future land use approvals seems consistent with the goals and objectives of
the city and its economic development endeavors.
Financial Impact
N/A
Attachments
Purchase agreement (to be distributed at the meeting)