Title
Resolution to Authorize the City Administrator to Negotiate a Sales Agreement for the City-Owned Property at 350 S. Fifth Avenue
Memorandum
Attached for your review and action is a resolution authorizing the City Administrator to negotiate with the purchaser selected by City Council for the sale of City-owned real property at 350 S. Fifth Avenue.
On March 4, 2013, City Council directed the City Administrator to execute a contract for services with a real estate broker for the sale of 350 S. Fifth Avenue. City Council found the real property was no longer needed for municipal or other public purposes. City Council requested sale proposals so that all available options for sale of the property be known when City Council considers the payment of the City's $3.5 million financial obligation for the property. A balloon payment of the loan principal is due December 16, 2013.
Selling the property will reimburse the General Fund for 350 S. Fifth Ave.-related expenditures, increase funding for the City's Affordable Housing Trust Fund and add to the City's tax base.
Colliers International was selected. A summary of Colliers International's marketing material is attached. The marketing of the property highlighted the City's preferences for less housing density than allowed by zoning and for mixed uses of the property.
The deadline for submitting purchase proposals was October 18, 2013, and five proposals were received. A summary is attached.
The offers from Dennis Dahlmann(“Dahlmann”) and CA Ventures are the strongest (cash, no contingencies, sales agreement, close in 2013) of the five proposals. Differences between the two offers are slight, but may be significant to City Council. Dahlmann is proposing a purchase price of $5,250,000. CA Ventures is proposing $5,150,000. Dahlmann is proposing to build to less than the maximum density allowed by D1 zoning. CA Ventures' offer assumes the ability to build to the maximum density allowed by D1 zoning....
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