Fiscal Note
No fiscal impact.
Title
Authorizing the execution of an agreement to terminate the option rights with respect to Phase 6 at Union Corners provided to Gorman & Company in the Second Amendment to the the Purchase and Sale Agreement executed between the City of Madison and Gorman & Company.
Body
WHEREAS, on October 30, 2013 the City of Madison (the “Seller”) executed a Purchase and Sale Agreement (the “PSA”) with Gorman & Company, Inc. (the “Buyer”) for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI (collectively, the “Property”) for a mixed-use redevelopment project. Under the terms of the PSA the Buyer was required to develop the Property in four phases.
WHEREAS, the First Amendment to the PSA, which among other items, provided that the number of phases be increased from four to six. In the Second Amendment to the PSA, only Phases 1 through 4 were acquired by the Buyer, and an option to purchase Phases 5 & 6 independently were granted to the Buyer.
WHEREAS. the City and Buyer also entered into a Memorandum of Option to Purchase (the “Memorandum”) which was recorded in the Office of the Dane County Register of Deeds on August 17, 2015 as document No. 5176971, and which Memorandum provides public notice of the Option Agreement.
WHEREAS, now, the City and the Buyer have come to a mutual agreement to terminate the Buyer’s rights to acquire Phase 6 per the terms described below.
NOW THEREFORE BE IT RESOLVED that the Common Council authorizes the execution of an agreement (the “Definitive “Agreement”) between the City of Madison (the “City”) and Gorman & Company, Inc. ( “Gorman”), with regards to a parcel of real estate currently owned by the City, which has an address of 2340 Winnebago Street, Madison, Wisconsin (hereinafter “Union Corners Phase 6”), and which is legally described in that certain Option to Purchase between Gorman and the City dated effective Augu...
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