City Council Minutes 2015 07 28 - Laserfiche WebLink

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City Council Meeting Minutes July 28, 2015 Page 8 of 28 Empire also sold in 2014 for $194.99 psf. 726 Front sold in 2015 for $192.10 psf. The proposed sale of Lucky Pie would be $207.79 psf. These figures are for the building square footage upon the individual properties. Summary: The purchase contract is for Lots 1 -2 with Front Street Ventures, LLC, with a revocable license, which includes a loading dock and trash enclosure; parking lease for 12 spaces and a development restriction on height and on the number of stories. Sales Agreement: Sale of Lots 1 and 2, Block 4, Town of Louisville, the purchase price is $1,200,000, with a deposit of $60,000 and the balance due at closing and a 60 day examination. The purchaser shall have an ALTA survey prepared for the property and closing will occur within 120 days of the execution of the agreement. The purchaser may assign the agreement to a different entity wholly owned by purchaser. The purchaser's related entity will agree to terminate the existing lease upon the property. The Parties agree to the Revocable License upon Lot 3, the Parking Lease upon Lot 3, and a Development Restriction upon Lots 1 and 2. This allows a portion of the loading dock and the trash enclosure to remain. The purchaser will be responsible for its care and maintenance. The City may terminate with 120 day notice. The purchaser must remove the building on Lot 3 at their expense. Parking Lease: As the sale area does not meet the City's parking requirements the 12 stalls on Lot 3 will be leased at an annual rate of $9,000 (increasing by CPI) for a 10- year period. The City may relocate the parking stalls as long as they are within 500 feet of the restaurant. Development Restriction: Limits the property to no more than a two -story building at a maximum height of 30 feet. This ensures a smaller building on the SW comer of Pine and Front Street. Another Offer: Received an unsolicited offer from Laurence Verbeck of $1,450,000, with most of the same terms. Should the Council not want to sell to Front Street Ventures, LLC, but still sell the property, staff recommended an RFP process to allow any interested parties to bid. Summary: The purchase price of $1,200,000 is greater than the as -is appraisal conducted in January 2013 for Lots 1 -5. This sale is only for Lots 1 and 2 and allows for Lucky Pie to reinvest in the property and helps to ensure a successful Louisville business remains in the community. It unencumbers 16 existing parking spaces for public parking. The remaining land can still accommodate parking and the City will receive $9,000 in annual parking lease revenue. It ensures a maximum two story building on a key downtown corner should the property be redeveloped. Staff Recommendation: Staff recommended the City Council adopt Ordinance No. 1698, Series 2015 on second and final reading.