08-28-2023 Council Meeting Packet - Amended

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CITY COUNCIL AGENDA ITEM 6E STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: August 28, 2023 TOPIC: Consider First Reading of Ordinance 09-23, Approving Sale of Land to JAVA Companies, LLC. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration to approve the sale of 2.24 acres of property owned by the City at the corner of Lake Drive and 77th Street (Lots 12 & 13, Block 2, Carole Estates 2nd Addition and a remnant of 7685 Lake Drive to JAVA Companies, LLC (Buyer). BACKGROUND Lots 12 and 13 were acquired by the City from the Economic Development Authority (EDA) in 1990, along with Lots 14, 16 & 17, for the construction of what was then known as Centennial Fire Station No. 2. At that time the City already owned Lot 15, Block 2 which was occupied by the original Centennial Fire Station No. 2. Lot 15, Block 2 was sold to the American Legion in 1999 as well as Lot 15 in 2017. The City purchased 7685 Lake Drive in 2019 for right-of-way allow for the 77th Street/Marketplace Drive realignment. Lots 12 & 13, Block 2 of Carole’s Estates 2nd Addition are immediately south of the American Legion and currently undeveloped. The property is approximately 2.01 acres in area. The property was being used for community gardens as a temporary use pending its sale and development. Two remnants of 7685 Lake Drive (.23 acres) are not needed for street purposes and available for assembly with the abutting property. The City has been planning for the realignment of 77th Street to connect with the signalized Marketplace Drive intersection to improve mobility for properties west of Lake Drive and create development opportunities for properties north and south of the new road. Land assemble and the provision of right-of-way for the road improvements have continued to be a requirement for the sale of the City property. JAVA Companies, LLC (Buyer), currently constructing a multi-tenant commercial project at 601 Apollo, has expressed interest in developing the City property. Through negotiations with Buyer, the City has reached a sale price of $519,080 for the 2.24 acres. The purchase is subject to a 180 day buyer contingency period with options for four, sixty day extensions. Under the terms of the agreement buyer will; 1) execute a restrictive covenant prohibiting use of property for automobile/truck repair, car wash or a motor fuel station; 2) purchase the property located at