Title
Resolution to Approve Agreement for the Purchase of Development Rights on the Lindemann and Weidmayer Property in Lodi Township and Appropriate Funds ($699,992.00) (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 William W. Lindemann and Karen A. Weidmayer farm in Lodi Township.
On February 7, 2011 (R-11-035), the City Council approved a grant application to the Farm and Ranch Land Protection Program for the Purchase of Development Rights (PDR) on a property owned by William Lindemann and Karen Weidmayer. Subsequently, on June 6, 2011 (R-11-231), the City Council approved a resolution accepting grant funds in the amount of $312,620.00 from USDA for the purchase of development rights on the property.
Purchase Agreement:
An appraisal was completed for the development rights on the property in January, 2011.
The attached 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: $638,000
FRPP Amount: $312,620
City portion of purchase price: $325,380
Other Costs:
Estimated Due Diligence: $ 20,000
Estimated Closing Costs: $ 18,125
Endowment: $ 23,867
Total Other Costs: $ 61,992
City Costs:
Purchase Price: $ 325,380
Other Costs: $ 61,992
Total City Costs: $ 387,372
The total p...
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