Title
Central Avenue Property Transaction
Action
Action:
A. Adopt a resolution approving the sale of city-owned property located at 5516 Central Avenue (Parcel Identification Number 103-021-02) to Starmount Management, LLC for $2.76 million, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to close the transaction as authorized.
Body
Staff Resource(s):
Tracy Dodson, City Manager's Office
Todd DeLong, Economic Development
Andrew Kelly, City Attorney's Office
Explanation
* In 2018, the City of Charlotte acquired approximately 3.89 acres at 5516 Central Avenue for $2.2 million that included a 36,348 square foot building.
* The city planned to consolidate the Innovation & Technology staff on the site, but a significant investment would be required to make the building suitable for this purpose.
* Starmount Management, LLC, a Charlotte-based management services company ("Starmount"), contacted the city regarding their desire to acquire the property to develop a Pediatric and Adolescent Behavioral Health Facility (the "Facility") and Training Program. Starmount expects to create 124 jobs (95 full-time) as a result of operating the Facility and Program.
* The offer from Starmount includes the following terms:
* Purchase price of $2.76 million ($25,000 Earnest Money Deposit);
* Due diligence period of 90 days (with possibility of two 30 day extensions);
* Closing to occur within 30 days after the expiration of the due diligence period; and
* The conveyance is subject to the city keeping a right to re-acquire the Property for the purchase price plus three percent per year if Starmount does not begin the process to redevelop the property within three years from the closing date.
* Starmount has also agreed to commit to a Training Program, the terms which require Starmount to:
* Initiate a training program for paid interns within 5 years from the closing date;
* Hire a minimum of 10 individuals each year for a...
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