HomeMy WebLinkAboutOrdinance 1885- Sale of the North Park Property, July 2014 'I Ordinance 1885
Sale of the North Park Property
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MONDAY , JULY 79 2014
The North Park Property
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North Park '
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VI. Elements of the Purchase and Sale Agreement
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a. DUE DILIGENCE: Six months from effective date of Ordinance 1885.
b. RATIFICATION CONTINGENCI': The City Commission must ratify
the City Manager's signature on the Agreement.
c. ACQUISITION OF ACCESS AND LTTILITY EASEMENTS: The
City will obtain two public access easements within six months of
effective date of Ordinance 1885.
d. APPROVAL OF MASTER SITE PLAN: BUYER obtains approval
from the City of Bozeman of a Master Site Plan for the Property within
six (6) months of the Effective Date.
e. TIF DISTRICT: North Park Economic Development (TIF) District
reimbursement agreement for public infrastructure.
f. CLOSING: Closing of the transaction set forth in this Agreement shall
occur on the later of (i) within sixty (60) days of the expiration of the six
(6) month contingency periods, or (ii) within sixty (60) days of the
expiration of the due diligence period.
XI . Fiscal Effects
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The North Park property was purchased in 2003 without an appraisal for
$3,000,000 with money from the City's Solid Waste Fund.
• The City would receive approximately $1,410,000 upon closing, after broker
commission and minimal additional expenses related to the transfer including title
insurance, recording fees and expenses related to outside counsel.
• The TIF district invested approximately $225,000 in development of the
preliminary plat. The plat has been extended twice and is currently active.
• The City receives revenue from an agricultural lease ($5,148) and cell tower lease
($7,26o) on the property, which is deposited into the Solid Waste Fund.
• The total value of the two public access easements has not been firmly established.
Cost estimates range from between $50,000 and $1oo,000 to acquire both Wheat
Drive and Flora Lane easements from the State.
Inclusion of the North Park property on the City tax rolls, investment in the TIF,
and new development in the largest M-2 zoned property left within the Bozeman
city limits.
Staff recommends that the proceeds be deposited in the Landfill Post-Closure Fund,
to assist with costs associated with the landfill site remediation and monitoring.
Staff Recommendation and Suggested Motion
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STAFF RECOMMENDATION: Staff recommends the
Commission provisionally adopt Ordinance 1885.
SUGGESTED MOTION: Having conducted a public hearing,
considered written andsp oken public testimony, and based on
the findings contained in this and other related staff
memoranda, the content of Ordinance 1885 and findings
articulated by the Commission during discussion, I hereby
move to provisionally adop t Ordinance 1885 ratifying the City
Manager's signature on the Agreement to Sell and Purchase
Real Estate, the North Park property, with Micropolitan
Enterprises, LLC and Powder River Company, LLC.
Ordinance 1885
Sale of the North Park �roperty
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