Title
Resolution to Approve Amended Budget for the Purchase of Development Rights on the William B. Gould Property (Total Project Budget of $482,667.00) (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve an amended budget for the purchase of development rights on the William B. Gould property, tax ID numbers I-09-05-200-002 and I-09-05-200-001 in Ann Arbor Township and to appropriate funds in the amount of $482,667 from the Open Space and Parkland Preservation Bond Proceeds with $192,500 to be reimbursed by the USDA Farm and Ranchland Protection Program.
William B. Gould applied to the Ann Arbor Township Land Preservation program in 2007. In January, 2008, the City of Ann Arbor applied for grant funds from the Farm and Ranchland Protection Program for the purchase of development rights on the property, and was subsequently awarded a grant in the amount of $256,000.00. The City of Ann Arbor and Ann Arbor Township have jointly been negotiating with the landowners. On November 6, 2008, City Council approved the purchase and Participation Agreement with Ann Arbor Township (R-08-454).
FRPP requested an updated appraisal be completed in order to meet their requirements of an appraisal being no older than 12 months. FRPP will only contribute a maximum of 50% of the appraised value. As such, FRPP’s maximum contribution is now $192,500.00.
Amended Project Budget:
Purchase Price:
Purchase Price: $669,833.00
FRPP Grant: - $192,500.00
Ann Arbor Township: - $238,666.00
Remaining: - $238,667.00
Closing / Due Diligence:
Due Diligence Estimated Costs: $25,000.00
Closing Estimated Costs: $15,000.00
Monitoring Costs: $24,000.00
Total Closing/Due Diligence Costs: $64,000.00
City of Ann Arbor Contribution:
Purchase Price: $238,667.00
Due Diligence: $ 12,500.00
Closing: $ 15,000.00
Monitoring: $ 24,000.00
Total Contribution: $290,167.00
The total budget of $482,667.00 includes the federal match share, which will be reimbursed...
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