Memorandum

City of Lawrence

City Manager’s Office

TO:              David L. Corliss, City Manager

CC:               Diane Stoddard, Assistant City Manager

FROM:          Britt Crum-Cano, Economic Development Coordinator/Planner

DATE:           November 1, 2011

RE:               North Mass Redevelopment’s intent to extend purchase agreement

Overview

On October 28, 2008, North Mass Redevelopment L.L.C., entered into an agreement to purchase multiple parcels near N 2^nd and Lyons from the City.  Provisions were provided within the agreement for an initial 24 month feasibility period in which the purchaser could conduct surveys, perform soils and engineering tests, obtain excavation and permits approvals, investigate title and plat the property.

If the due diligence necessary for investigating project feasibility was not satisfied within the initial 24 month period, the contract allowed extensions.  The feasibility period could be extended for 3 successive periods of 12 months each if the Purchaser provided the seller written notice.  Written notice, as specified within the contract, “…must be received by the seller prior to the expiration of the then current contingency period, notifying seller of Purchaser’s right to exercise a subsequent extension.” 

The City did not have record of receiving written notice of the Purchaser’s intent to extend the feasibility project prior to the expiration of the initial feasibility period (October 28, 2010).  However, a letter was received on October 19, 2011 from Thomas H. Johnson (Petefish , Immel, Heeb & Hird, L.L.P.), on behalf of North Mass Redevelopment, requesting an extension for the feasibility period.  According to the letter, “…neither the City nor Purchaser can find Purchaser’s notice exercising its first twelve (12) month option to extend from October 28, 2010 through October 27, 2011; and no notice may have been sent.”  However, it should be noted that it was the Purchaser’s intention to exercise its option and Purchaser is continuing to work diligently on determining the feasibility of the project.  Staff has been in touch with the Purchaser off and on and feels progress is still being made. 

Requested Action

Purchaser requests the City accept their October 19, 2011 letter as notice to exercise both the first twelve month extension (effective from October 28, 2010 to October 27, 2011) as well as the second twelve month extension (effective October 28, 2011 to October 27, 2012).

Recommendation

Staff recommends the City Commission extend the contract’s feasibility period to October 28, 2012 and allow the purchase to continue.