Title
Resolution to Purchase Property Located at 5 W. Eden Court, Ann Arbor and Appropriate $82,500.00 from the Open Space and Parkland Preservation Millage Proceeds (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve the purchase the property located at 5 W. Eden Court, owned by Michael Vliet and appropriate $82,500.00 from the Open Space and Parkland Preservation Millage Proceeds.
The parcel is located immediately adjacent to Bryant Community Center. The site will provide an ability to expand the Community Center and programming services, besides other uses for the Park and Recreation system.
A Phase I Environmental Site Assessment will be completed on the property prior to closing. 2011 taxes for this property are estimated to be $1,400, which will permanently come off the tax rolls after this purchase.
The resolution approves a purchase price of $70,000 based on a fair market appraisal of the property, and approves a total project budget of $82,500 from the Open Space and Parkland Preservation Millage Proceeds to cover the purchase price, due diligence and closing costs. The resolution also approves a lease back option to the landowner for up to 12 months so the property is not vacant while the City and Community Development prepare for renovations to be made to the house.
Project Budget:
Purchase Price $70,000
Estimated. Closing Costs $ 2,500
Estimated Due Diligence Expenses $10,000
Total Appropriation $82,500
A title review has been completed on the property. Mr. Vliet has two outstanding mortgages on the property. One of these mortgages is from the City's CDBG funds. The combined amount of outstanding mortgages is more than $70,000. The Office of Community Development is recommending that City Council approve discharging the CDBG funded mortgage amount equal to the combined remaining balance of the two mortgages in excess of $70,000.
Attach: Location Map
Staff
Prepared by: Ginny Trocchio, The Conservation Fund
Reviewed by: Sumedh Bahl Community Services Administrator
Body
Whereas, Purchase of parkland may be funded through the Open Space and Park Land Preservation Millage Proceeds;
Whereas, The property located at 5 W. Eden Ct., Ann Arbor, is adjacent to an existing parkland and has qualities suitable for park use as determined by the Park Advisory Commission and Parks and Recreation Staff;
Whereas, The property has been appraised as required by Section 1:320 of the Ann Arbor City Code;
Whereas, The Purchase Price of the said property is $70,000.00;
Whereas, There are sufficient funds in the Open Space and Parkland Preservation Millage Proceeds to cover the purchase price, due diligence and closing costs; and
Whereas, Of the two outstanding mortgages on this property, one of the mortgages was funded by the City's CDBG funds;
RESOLVED, That City Council approves the purchase of 5 W. Eden Court, owned by Michael Vliet, for use by the Park and Recreation system, including the adjacent Bryant Community Center;
RESOLVED, That City Council appropriate funds from the Open Space and Parkland Preservation Millage Proceeds and establish a project budget for the acquisition of the property in the amount of $82,500.00 to cover the costs of acquisition, closing, and incidental costs to be available for expenditure without regard to fiscal year;
RESOLVED, That City Council approve a post-closing lease to Michael Vliet of 5 W. Eden Court, for a period of up to 12 months commencing the date of closing, with the lease holder responsible for maintenance of the property during which specific use(s) for the property by the Bryant Community Center and/or the Parks and Recreation system will be finalized;
RESOLVED, That City Council approve discharging the balance of the CDBG funded mortgage equal to the total balance of the various mortgages on this property in excess of the City's purchase price;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the purchase and sales agreement, discharge of mortgage, and lease agreement after approval as to substance by the City Administrator and as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized and directed to implement this resolution, including the execution of necessary closing documents specified in the purchase and sale agreement after approval as to form by the City Attorney.