First Street Property Sale

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First Street Property Sale

  1. 1. College Station City Council Regular Session February 14, 2013
  2. 2.  July 25, 2011 – City Council Workshop Session ◦ Staff presentation regarding surplus land held by the City ◦ First Street Property; 3.36 acres / $2,125,860 (2011 BCAD Appraised Value) ◦ Council Direction: Move forward with disposition of First Street Fall 2011 – Brokers/developers express interest in First Street ◦ Asset Plus submits a $2.9M offer and Letter of Intent; November 1, 2011
  3. 3.  December 19, 2011 – City issues a Request for Interest ◦ Responses due January 17, 2012 ◦ Asset Plus, Prescott Realty Group, EdR February 2012 – Begin exclusive negotiations with Asset Plus -Reputation -Proposed purchase price -Quality of projects -Familiarity with College Station -Desire to incorporate Café Eccell
  4. 4.  Existing lease between the City and Café Eccell Lots 1-7 and 22 of Block 11 Originally executed December 1, 1998 for five years Lease contained a ten year option ◦ Lease was to expire on November 30, 2013 ◦ New 45-day extension
  5. 5.  Two Purchase & Sale Agreements ◦ Between the City and RVP, and ◦ Between the RVP and Asset Plus Sale Price of $3,555,000 ◦ Net Sale Price of $2,975,000  Acknowledges $580,000 economic development grant  Used for purchase of the First Street Property by Asset Plus
  6. 6.  Developer’s Obligations ◦ Four to eight story development with parking structure ◦ Commercial component facing Church Avenue ◦ $30,000,000 in total development costs ◦ Completion no later than January 1, 2016 ◦ Buy back option after second anniversary if no building permits ◦ Good faith efforts to negotiate new lease with Café Eccell, operate as much as possible during construction, and incorporate into final development
  7. 7. Funding Source for Original Previous Utilities AnticipatedLots 12-21 Repayment DistributionGeneral Fund $400,000 $360,000 $2,412,792Economic Development Fund $322,208 - $322,208Electric Fund $200,000 ($120,000) $80,000Water Fund $200,000 ($120,000) $80,000Wastewater Fund $200,000 ($120,000) $80,000 $1,322,208 - $2,975,000
  8. 8.  February 14, 2013 ◦ Presentation, possible action, and discussion regarding  Resolution,  Economic Development Agreement, and  Purchase & Sale Agreement between the City and RVP Mid February through Mid June ◦ 120 day Feasibility Period for Asset Plus ◦ Includes developer’s lease negotiations with Café Eccell June 2013 ◦ Closing ◦ Net Purchase Price of $2,975,000
  9. 9. City of Asset Plus College Station City makes $580,00 grant to Asset Plus to be used for purchase of property from RVP RVP pays City $3.555M Asset Plus pays RVP $3.555M ($2.975M + $580K = $3.555)City conveys property RVP conveys property to to RVP Asset Plus Research Valley Partnership
  10. 10. “The fair market value is determined by an appraisal obtained by the political subdivision that owns the land or interest or, in the case of land or an interest owned by a home-rule municipality, the fair market value may be determined by the price obtained by the municipality at a public auction…” Texas Local Government Code - Section 272.001(b)City’s Appraisal Asset Plus’ AppraisalHoltkamp Realty Consultants Consulting & Appraisal Professionals, Inc.  $3,555,000  $2,975,000 ◦ $24 PSF ◦ $20 PSF ◦ April 11, 2012 ◦ June 21, 2012 ∆ $580,0002011 BCAD Appraised Value 2012 BCAD Appraised Value$2,125,860 $3,073,760

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