Title
Resolution to Approve Purchase Agreement for the Purchase of Development Rights on the Nancy M. Geiger Revocable Living Trust and Rose Ann Geiger Contingent Trust in Northfield Township and Appropriate Funds in the Amount of $583,187.00 (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 Nancy M. Geiger Revocable Living Trust and Rose Ann Geiger Contingent Trust farm in Northfield Township.
On June 21, 2010 (R-10-217) City Council approved grant application to the Farm and Ranch Land Protection Program for the Purchase of Development Rights (PDR) on the Nancy M. Geiger Revocable Living Trust and Rose Ann Geiger Contingent Trust farm in Northfield Township. The City did not receive grant funds for the property; however, the landowners are willing to make a donation of 20% of the fair market value.
An appraisal was completed for the development rights on the property in June, 2010 and the fair market value was determined to be $655,400.00 for approximately 115 acres. The landowners have agreed to make a donation of 20% of the fair market value, or $131,080.00.
The attached resolution approves the Agreement for the Purchase 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 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.
Details of the budget for this purchase of development rights are as follows:
Purchase Price:
Appraised Fair Market Value: $655,400
Landowner Donation: $131,080
City portion of purchase price: $524,320
Other Costs:
Estimated Du...
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