Title
Land Acquisition for Corridors of Opportunity Redevelopment
Action
Action:
A. Approve the purchase of up to 4.5 acres (parcel identification numbers 08906447 and 08906431) at 5342 Reagan Drive and 5350 Reagan Drive, the Economy and Budget Inn Motel sites in the amount of $4,200,000 from Rising Tides, LLC and Mara Enterprise, LLC for the redevelopment of the property,
B. Authorize the City Manager to accept funds from the Foundation for the Carolinas in the amount of $1,000,000 toward this initiative,
C. Authorize the City Manager to negotiate and execute any documents necessary to complete this transaction, and
D. Adopt a budget ordinance appropriating $1,000,000 from the Foundation for the Carolina in the General Capital Projects Fund.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Erin Gillespie, Economic Development
Explanation
§ The Spring 2020 Sugar Creek/85 Design Sprint and 2022 Sugar Creek Playbook recommended reducing the number of motel rooms at the interchange of Sugar Creek and I-85 from over 1,200 hotel rooms to reduce violent transactional crime in the area.
§ This property proposed for purchase has four buildings, three of which are used for the current hotel.
§ The property is zoned B-1 (business-1) and is in City Council District 1 on the southeastern corner of the interchange, adjacent to the Hidden Valley Neighborhood.
§ This purchase will allow for a reduction in the number of motel rooms at the interchange and redevelopment of the site.
§ The Mayor’s Racial Equity Initiative is contributing $1,000,000 towards demolition of the existing buildings, relocation costs of current residents, and fencing/security associated with site preparation for redevelopment.
§ Economic Development and Housing & Neighborhood Services are working with the hotel management group and Crisis Assistance Ministries to inform any long-term residents of the motel purchase. Crisis Assistance Ministries will work with any people currently living in the hotel to find them new housing and provide additional support services during this time of transition.
§ The terms of the transaction are:
- Purchase Price: $4,200,000
- Earnest Money Deposit: $10,000
- Due Diligence: 60 days
- Closing: 30 days from the end of the Due Diligence period
§ This transaction is consistent with City Council’s adopted City-Owned Real Estate and Facilities Policy.
Fiscal Note
Funding: General Capital Investment Plan
Charlotte Business INClusion
This is a real estate leasing and acquisition contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy).
Attachments
Attachment(s)
Property Map
Budget Ordinance