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<br /> <br /> <br /> <br />HPC COMMUNICATION <br />SUBJECT: PURCHASE AND SALE AGREEMENT WITH LOUISVILLE MILL SITE, LLC <br /> <br />DATE: AUGUST 19, 2013 PAGE2 OF4 <br />with the City contributing funding to help purchase the property, landmark the Grain <br />Elevator, restore the building and redevelop the property. The City received two <br />responses, including one from Amterre Property Group, which disclosed it had secured <br />a purchase agreement on the Grain Elevator property. After significant negotiations, On <br />August 7, 2012 the City Council approved an agreement with Amterre Property Group <br />to purchase, rehabilitate and redevelop the Grain Elevator. However, due to a filing of a <br />petition to repeal the ordinance approving funding for the agreement, Amterre could not <br />move forward and so the City purchased the property for $950,000. <br /> <br />On October 4, 2012 staff facilitated a public meeting to solicit from interested residents <br />ideas and recommendations regarding future uses of the building they would like to see. <br />This information was incorporated into a second RFP seeking a development partner to <br />stabilize, rehabilitate, and redevelop the property. That RFP was reviewed and <br />approved by the Historic Preservation Commission and the City Council and then <br />issued on November 19, 2012. <br /> <br />The City received two proposals in response to this second RFP; one from Hartronft <br />Associates of Louisville, and one from Olde Town Group, LLC of Arvada. On April 2, <br />2013, the City Council approved moving forward and negotiating an agreement with <br />Olde Town Group, LLC. <br /> <br />Randy Caranci and J. Erik Hartronft submitted an offer to purchase the Property on <br />June 10, 2013 and a copy of the offer is attached. The City Council met in executive <br />session on July 2, 2013 and provided a strategy to negotiate an agreement with Caranci <br />and Hartronft. Negotiations with Olde Town Group have been put on hold until an <br />agreement with Caranci and Hartronft is voted upon by the City Council. <br /> <br />DISCUSSION: <br />The following is a discussion of all the main components of the Purchase and Sale <br />Agreement with Louisville Mill Site, LLC, an entity controlled by Randy Caranci and J. <br />Erik Hartronft. For simplification, the term Purchaser will be used to describe Louisville <br />Mill Site, LLC. <br /> <br />1) Purchaser will purchase the Property for $200,000 from the City. Purchaser will <br />provide a $10,000 deposit. <br />2) Purchaser will present a PUD application and plat with 90 days of executing the <br />agreement. <br />a. The Plat will redraw the boundaries of the Grain Elevator property and <br />Caranci’s property as shown in Exhibit D of the Agreement. <br />b. This will solve the encroachment issue related to the Grain Elevator <br />structure. <br />3) Closing will not occur until an approved PUD is achieved for the Property. <br />4) Purchaser will complete a Scope of Work for stabilization of the Grain Elevator <br />noted in Exhibit C of the Agreement. <br />a. The City will contribute up to $500,000 towards the Scope of Work.