Title
Resolution to Purchase Property Located at 5 W. Eden Court, Ann Arbor and Appropriate $82,500.00 from the Open Space and Parkland Preservation Millage Proceeds (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve the purchase the property located at 5 W. Eden Court, owned by Michael Vliet and appropriate $82,500.00 from the Open Space and Parkland Preservation Millage Proceeds.
The parcel is located immediately adjacent to Bryant Community Center. The site will provide an ability to expand the Community Center and programming services, besides other uses for the Park and Recreation system.
A Phase I Environmental Site Assessment will be completed on the property prior to closing. 2011 taxes for this property are estimated to be $1,400, which will permanently come off the tax rolls after this purchase.
The resolution approves a purchase price of $70,000 based on a fair market appraisal of the property, and approves a total project budget of $82,500 from the Open Space and Parkland Preservation Millage Proceeds to cover the purchase price, due diligence and closing costs. The resolution also approves a lease back option to the landowner for up to 12 months so the property is not vacant while the City and Community Development prepare for renovations to be made to the house.
Project Budget:
Purchase Price $70,000
Estimated. Closing Costs $ 2,500
Estimated Due Diligence Expenses $10,000
Total Appropriation $82,500
A title review has been completed on the property. Mr. Vliet has two outstanding mortgages on the property. One of these mortgages is from the City’s CDBG funds. The combined amount of outstanding mortgages is more than $70,000. The Office of Community Development is recommending that City Council approve discharging the CDBG funded mortgage amount equal to the combined remaining balance of the two mortgages in excess of $70,000.
Attach: Location Map
Staff
Prepared by: Ginny Trocchio, The Co...
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