Fiscal Note
The proposed resolution authorizes that a Purchase and Sale Agreement, authorized by adopted RES-18-00832 (Legistar File #53799), is amended to remove the requirement that the “Buyer” pay any special assessments at closing and that $432,206 of Center for Industry & Commerce (CIC) property sale proceeds is transferred into an escrow account at closing to be used by the Buyer toward the construction of their stormwater needs on the Site upon completion. The $432,206 transfer will be funded by Special Assessment Fund balance.
The total direct cost to the City of this resolution is $853,435. The first $421,229 is the alleviation of special assessment required to be paid by the Buyer at closing. The remaining $432,206 is a transfer out of the City’s Special Assessment Fund to be provided via an escrow agreement to the Buyer at closing. It would have been the City’s intent to use this $853,435 to pay off Special Assessment Fund balances on other property owned by the City in the Center for Industry & Commerce.
The Site contemplated for sale through this resolution is approximately 22 acres in size. The Site is currently owned by the City and not generating property taxes. The Buyer proposes to construct a $42 million facility that will be taxable. As there is no Tax Increment District within the Center for Industry and Commerce, property tax revenue will be realized soon after completion and occupancy of the project.
The current Special Assessment Fund ("Fund") balance for the Center for Industry & Commerce is $2,119,837. The sale contemplated by the proposed resolution will reduce this balance by $929,366. The $929,366 is the final cost to reconstruct Ronald Reagan Drive, of which the City pays the entire special assessment balance of $929,366 at closing ($508,137 agreed to in the Purchase and Sale Agreement plus $421,229 that is currently the responsibility of the Buyer but will be alleviated by the proposed amendment). An additional $326,263 might be p...
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