01-10-2024 Council Packet - Laserfiche WebLink

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The Purchase Agreement includes a purchase price of $1,375,000. Earnest money in the amount of $10,000 shall be payable on signing of the Purchase Agreement to be held in trust by the Seller’s attorney, and the remaining purchase cost ($1,365,000) is payable at closing. The closing for the purchase of 2828 Condit Street shall take place on or before April 12, 2024. Each of the parcels owned by the City of Little Canada were purchased with funds from the Kandace Heights Tax Increment Finance (TIF) District that was initially established in 1990. This district paid off G.O. TIF Bond (Series 1998B) in February 1, 2010 and the TIF District expired in 2017. This district no longer has any outstanding obligations, so the cash available can be used for pooling purposes and can be used for the purchase of this property. SOURCE OF FUNDING: As mentioned above, the first source includes funds from TIF 2-1 Kandice Heights (Fund 464). This TIF fund has a cash balance of $756,813. City staff also reached out to our financial advisors at Ehlers and confirmed that the available funds can be used for the land acquisition. This TIF district is a “pre-1990” district, which means that it is not subject to the five-year rule that prohibits new expenditures later in the life of the district and it is not subject to pooling limitations. This enables the City to use the available TIF dollars to assist in redevelopment inside or outside of the boundaries of the TIF district. The second recommended source of funding is fund balance from the Economic Development Fund 105. This fund currently has a cash balance of $792,950 available which can be used toward this purchase. The majority of these funds resulted from a transfer from Fund 474 Owasso/Woodlyn Redevelopment Area of $672,835 at the end of 2022. The fund balance in from Fund 474 originated from the City’s purchase of the Donovan Construction site in 2013 located at 53 South Owasso Boulevard. At this time, the City also purchased the existing cell towers on this site which were sold to Q3 Contracting in 2020. Since this property was sold to Q3 contracting for the construction of their corporate headquarters and cell towers have been sold, the remaining fund balance of $672,835 was transferred to the EDA Fund. The remaining balance from EDA Fund 105 can also be used for the purchase of this property. RECOMMENDED ACTION: City staff recommends City Council adoption of a Motion to Approve the Purchase Agreement for the acquisition of the property located at 2828 Condit Street.