Title
Sale of Property: 1915 Vernon Drive
Action
Action:
A. Adopt a resolution proposing to accept the offer from Ross Allen Custom Builders Inc. to purchase approximately 0.82 acres of vacant land at 1915 Vernon Drive (Parcel Identification Number 181-021-84) for $221,000, and
B. Authorize the advertisement of the proposed sale for upset bids in accordance with the Resolution and authorize the City Manager to execute all documents necessary to complete the sale of the property in accordance with the resolution.
Body
Staff Resource(s):
Tony Korolos, Engineering & Property Management
Tim O'Brien, Engineering & Property Management
Explanation
* On May 11, 2015, the City Council approved the sale of property at 1915 Vernon Drive.
* The property went through five rounds of upset bids. The high bidder decided to terminate the contract during the due diligence period. The upset bid process does not permit the City to go to the next highest bidder, since the previous upset bid process had finished and earnest money was returned to the Buyer. Consequently, the parcel was relisted "for sale" and a new buyer submitted an offer.
* Ross Allen Custom Builders Inc. presented the highest initial offer, and if approved, will be advertised for upset bid based on the following terms:
* Purchase price of $221,000,
* Earnest money deposit of $12,000,
* Due diligence period of 30 days, and
* Closing within 30 days after expiration of the due diligence period.
Background
* The property is located at the corner of Providence Road and Vernon Drive in the Eastover community.
* The property was acquired as part of the Andover Road Storm Drainage Improvement project and was used as a staging area during the project.
* An appraisal of the property established the fair market value at $210,000.
* Nearly 50% of the lot is within the flood plain from Briar Creek located at the rear of the lot. The City will retain a storm drainage easement and is prov...
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