08-14-12 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: August 14.2012 Requested By: Traci Teach Department: Administration Report Resolution: Ordinance: Exhibit: Purchase and Sale Agreement Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: YES NO SUMMARY & RECOMMENDATION In February 2012, staff presented information to both the Economic Development Corporation Board (EDC) and the 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 91 land 915 S. 8th Street to G Force Development, Inc. in the amount of $350,000. The developers intend to subdivide the building and develop one side as medical/office space and the other as retail space. The broker's opinion of value, which in this case, is a more accurate representation of the property's value than the appraisal, is $350,000. The prospective buyer has deposited earnest money with the broker and has signed the attached Restriction Agreement that is attached to the Purchase and Sale Agreement (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 91 land 915 S. 8th Street from the City to the EDC, the EDC must approve this document prior to executing an identical Purchase and Sale Agreement that conveys the land from the EDC to G Force Development, Inc. Staff recommends the following: Approval of the Purchase and Sale Agreement for 911 and 915 S. 8th Street from the City to the EDC; and Approval of the Purchase and Sale Agreement for 911 and 915 S. 8th Street from the EDC to G Force Development, Inc. Action Required by La Porte Development Corporation Board: 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 911 and 915 S. 8th Street to the La Porte Development Corporation, acting as an independent foundation, for the resale of such property to G Force Development, Inc. for the development of office space.