05-15-12 Meeting of the La Porte Development Corporation Board of Directors

Browse Search

REQUEST FOR ECONOMIC DEVELOPMENT CORPORATIONAGENDA ITEM Appropriation Agenda Date Requested:May 14, 2012 Source of Funds:N/A Requested By: Traci Leach Account Number:N/A Department:Administration Amount Budgeted:N/A Report Resolution: Ordinance: Amount Requested: N/A Exhibit:Purchase and Sale Agreementfrom City to Budgeted Item:YESNO EDC Exhibit:Purchase and Sale Agreement from EDC to K. Belle Interests, LLC. SUMMARY & RECOMMENDATION In February 2012, staff presented information to both the Development Corporation Board(EDC) andthe City Council on an exception in Chapter 272 of the Local Government Code that allows municipalities to sell real property by utilizing an independent foundation, such as the EDC. This exception provides that a city can negotiate and sell property to a desired end user without public bid procedures provided that the land is developed by contract and sold through the independent foundation. Pursuant to Chapter 272.001 (b)(4), the City has, through its broker, negotiated the sale of 908W. Main Street toK. Belle Interests, LLCin the amount of $275,000 for the purpose of developing the property into officespace. The broker’s opinion of value, which in this case, is a more accurate representation of the property’s value than the appraisal, is $275,000.The prospective buyer has entered into aletter of intent, deposited earnest money with the broker, and will have to approve and sign the Restriction Agreementthat is attached to the Purchase and Sale Agreement as Exhibit A. The Purchase and Sale Agreement under consideration is the first procedural step that is required to complete the transaction. Should Council approve the Purchase and Sale Agreement to convey 908W. Main from the City to the EDC, the EDC must approve this documentprior to executing an identical Purchase and Sale Agreement that conveys the land from the EDC to K. Belle Interests, LLC. Staff recommendsthe following: Approval of the Purchase and Sale Agreement for 908 W. Main Street from the City to the EDC; and Approval of the Purchase and Sale Agreement for 908 W. Main Street from the EDC to K. Belle Interests, LLC. Action Required by Economic Development Corporation Board: 1.Consider approval or other action to authorize the La Porte Development Corporation Board president to negotiate and execute a purchase and sale agreement, and any necessary agreements and instruments related thereto, for the transfer of 908W. Main Street to the La Porte Development Corporation, acting as an independent foundation, for the resale of such property to K. Belle Interests for the development of office space.