Fiscal Note
The City is currently exercising its option to purchase four industrial lots costing approximately $2 million in the World Dairy Center. This resolution would extend the time period during which the City could purchase the remaining four lots under option, at a cost of approximately $1.5 million, until after the adoption of the 2007 budget. This resolution has no direct fiscal impact but would preserve the current option price should the funding needed to purchase the remaining four lots be approved in the 2007 budget.
Title
Authorizing an amendment to an Option to Purchase with FHB Investments, LLC to acquire lots within the World Dairy Center for the Wisconsin BioAg Gateway Project.
Body
PREAMBLE
The Common Council adopted a resolution (File No. 03066) on April 4, 2006 authorizing the execution of two Options to Purchase (“Option 1” and “Option 2”, collectively the “Options”) with FHB Investments, LLC (“FHB”) to acquire lots within the World Dairy Center for the Wisconsin BioAg Gateway Project. The lots are located within TID# 24 (Southeast Industrial Development) and have a total purchase price of $3,509,001. The 2006 Adopted Capital Budget authorized up to $2,000,000 in available TIF proceeds for land acquisition costs in TID# 24. Expenditures beyond the authorized $2,000,000 would require additional Common Council approval. Under the terms of the Options the City is required to exercise the Options to acquire the lots by October 8, 2006 and close within thirty (30) days of this date or at a later date agreed to by the parties. The City intends to exercise its option to acquire all the lots (Lots 4, 5 and 11) under Option 1 and Lot 6 under Option 2 (see attached Exhibit) at a cost of $1,929,332 plus miscellaneous closing costs of approximately $7,500 (total cost $1,936,832). The acquisition of these lots is within the $2,000,000 authorized in the 2006 Adopted Capital Budget and would leave a balance of approximately $63,168. Au...
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