Title
Sale of City-Owned Land for West Sugar Creek Redevelopment
Action
Action:
A. Adopt a resolution approving the sale of 4.32 acres of city-owned property at 5342 Reagan Drive and 5350 Reagan Drive (parcel identification numbers: 089-064-47 and 089-064-31) to Prosperity Hidden Valley, LLC for $1 for the development of affordable housing, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the sale of the property.
Body
Staff Resource(s):
Tracy Dodson, City Manager's Office
Monica Holmes, Planning, Design & Development
Rebecca Hefner, Housing & Neighborhood Services
Explanation
* The city-owned property at 5342 Reagan Drive and 5350 Reagan Drive (collectively, the "Property") is located on the southeastern corner of the West Sugar Creek Road and Interstate 85 interchange, in Council District 1. The Property consists of approximately 4.33 acres and is currently zoned N2-B (intended for the development of multi-family dwellings).
* In April 2023, the city acquired the Property for $4,200,000, which was the estimated fair market value based on a February 9, 2023, appraisal of the Property.
* Prior to the city purchase, the Property was an operating hotel (Economy Inn) with a long history of nuisance and criminal activity.
* On June 29, 2023, the city issued a Request for Proposals (RFP) for the redevelopment of the Property. The primary objective of the RFP was to address the critical need for affordable homeownership opportunities for low- to moderate-income households, and specifically requested the development of affordable, for-sale townhomes on the Property.
* To ensure a smooth transition into the redevelopment phase, the city conducted environmental remediation, building demolition, and rezoning of the Property during the RFP process.
* Three responses to the RFP were received, and Prosperity Hidden Valley, LLC, a North Carolina limited liability company, was selected based on their qual...
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