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File #: 10-0664    Version: 1 Name: 07/19/10 Honke FRPP Grant
Type: Resolution Status: Passed
File created: 7/19/2010 In control: City Council
On agenda: 7/19/2010 Final action: 7/19/2010
Enactment date: 7/19/2010 Enactment #: R-10-270
Title: Resolution Approving Cooperative Agreement with and Purchase Agreement for the Honke Family LLC Property in Northfield Township and Appropriate Funds - $718,267.00 (8 Votes Required)
Attachments: 1. Honke Map.pdf
Title
Resolution Approving Cooperative Agreement with and Purchase Agreement for the Honke Family LLC Property in Northfield Township and Appropriate Funds - $718,267.00 (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a Cooperative Agreement between the United States of America Commodity Credit Corporation and the City of Ann Arbor for the Farm and Ranch Lands Protection Program (FRPP) grant funds for the Honke Family LLC farm in Northfield Township.

On February 1, 2010 (R-10-023), City Council approved grant application to the Farm and Ranch Land Protection Program for the Purchase of Development Rights (PDR) for the Honke farm. The City recently received notice that NRCS has awarded $260,910.00 toward the purchase of the development rights on the farm.

Purchase Agreement:
An appraisal was completed for the development rights on the property in February 2010.

The attached resolution also approves the Purchase Agreement for the Sale of Agricultural Land Development Rights for 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: $669,000.00
FRPP Amount: $260,910.00
City portion of purchase price: $408,090.00

Other Costs:
Estimated Due Diligence: $ 12,000.00
Estimated Closing Costs: $ 13,400.00
Endowment: $ 23,867.00
Total Other Costs: $ 49,267.00

City Costs:
Purchase Price: $ 408,090.00
Other Costs: $ 49,267.00
Total City Co...

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