Title
Resolution to Approve Purchase Agreement for the Purchase of Development Rights on the Robert H. Schultz Property in Superior Township and Appropriate Funds in the Amount of $523,567.00 (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a purchase agreement for the purchase of development rights on the Robert H. Schultz farm in Superior Township.
On February 21, 2012 (R-12-054), City Council approved a grant application to the Natural Resources Conservation Service (NRCS) - Farm and Ranchland Protection Program for the Purchase of Development Rights (PDR) on the Schultz farm in Superior Township. Subsequently, City Council approved the acceptance of grant funds (R-12-0532) in the amount of $229,320.00 towards the purchase of the development rights on the farm.
Purchase Agreement:
An appraisal was completed for the development rights on the property in February 2012.
The 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 FRPP and 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 required by all respective governmental entities connected with the purchase of the development rights.
Project Budget:
Purchase Price:
Appraised Fair Market Value: $468,000.00
FRPP Amount: $229,320.00
City portion of purchase price: $238,680.00
Other Costs:
Estimated Due Diligence: $ 20,000.00
Estimated Closing Costs: $ 11,700.00
Endowment: $ 23,867.00
Total Other Costs: $ 55,567.00
City Costs:
Purchase Price: $ 238,680.00
Other Costs: $ 55,567.00
Total City Costs: $ 294,247.00...
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