Title
Resolution to Approve the Purchase of Development Rights on the Boike Farm in Northfield Township and Appropriate Funds, Not to Exceed $502,307.00 from the Open Space and Parkland Preservation Millage Proceeds (8 Votes Required)
Memorandum
Attached for your approval is a resolution to purchase development rights on the farm owned by Annie Boike in Northfield Township. The landowner has agreed to make a 20% donation toward the purchase price. The total city contribution will not exceed $502,307.00 from the Open Space and Parkland Preservation Millage Proceeds.
Purchase Agreement:
An appraisal was completed for the development rights on the property in September 2011, and the fair market value was determined to be $579,300.00 for approximately 136 acres. The landowners have agreed to make a donation of 20% of the fair market value, or $115,860.00.
The attached resolution approves the Purchase Agreement for the Sale of Agricultural Land Development Rights on the farm. The Purchase and Sale of the development rights is contingent on the following:
A. Approval of the appraisal by the City for the establishment of a fair market price for the development rights;
B. Conveyance of good and marketable title to the development rights;
C. An environmental site assessment acceptable to the City of Ann Arbor in its sole discretion;
D. Agreement to the terms and conditions of a Grant of Easement for the Development Rights.
Project Budget:
Appraised Value = $579,300.00
Landowner Donation = $115,860.00
Purchase Price = $463,440.00
City contribution:
Purchase Price = $463,440.00
Due Diligence = $ 10,000.00
Closing Costs = $ 5,000.00
Endowment = $ 23,867.00
Total City costs = $502,307.00
Conservation Easement:
The easement is made pursuant to section 36111 b of the Natural Resources and Environmental Protection Act (MCL 324.3611Ib; MSA 13A.3611Ib) and Chapter 42 of the Ann Arbor City Code. The easement is for the purpose of preservation of the Property’s a...
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