Title
Resolution to Approve Amendment No. 3 to the Option to Purchase Agreement with Village Green Residential Properties LLC (8 Votes Required)
Memorandum
Village Green Residential Properties LLC has an Option to Purchase Agreement with the City to acquire and develop the City-owned site located at the corner of First and Washington. The Option Agreement was approved by Council on February 20, 2007 with an amended expiration of May 31, 2009 including two one-month extensions authorized by the City Administrator as permitted for within the agreement.
The Agreement requires the developer to make reasonable progress towards developing the property in order to exercise the Option. The developer is at the point in their project where they are attempting to arrange for financing. The unanticipated and unprecedented collapse of the U.S. financial markets has made it very difficult for the developer to obtain bank financing. To date, progress is being made but moving slowly. The developer has provided and is working off of a timing plan which anticipates being able to close on the sale of the land by December 30, 2009.
In order to complete this project the Developer has requested an extension of the term of the Option Agreement until December 30, 2009. Staff recommends approving this extension plus authorization for two three-month extensions at the City Administrator’s discretion. We expect this amendment to provide the developer sufficient time to complete their financing arrangements and close on the sale of the property.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Mary Joan Fales, Senior Assistant City Attorney
Reviewed by: Tom Crawford, Chief Financial Officer
Body
Whereas, On February 20, 2007, City Council approved an Option to Purchase Agreement with Village Green Properties LLC for the parcel of land located at the corner of First and Washington Streets in Ann Arbor;
Whereas, In October 2007, a Parking Agreement was approved by...
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