CITY COMMISSION AGENDA ITEM

Department:	City Attorney’s Office		Commission Meeting Date:  April 4, 2017
Staff Contact:	Toni Wheeler, City Attorney
Recommendations/Options/Action Requested:
Authorize the City Manager to execute the Second Amendment to Purchase and Sale of Real Estate Between the City of Lawrence and the North Mass Redevelopment Group, L.L.C.
Executive Summary:		In October 2008, the City Commission authorized the City to enter into an agreement with the North Mass Redevelopment Group, L.L.C. (“developer”) to sell excess property the City owns north of the Kansas River and adjacent to the levee, provided certain conditions are met.  The agreement provided the developer a period of five (5) years to conduct its due diligence on the property and to gain certain approvals from the U.S. Army Corps of Engineers and local land use approvals.  In 2013, the developer requested, and the City Commission granted, an extension of the due diligence period through April 27, 2017.  The developer reports that progress has been made, but additional time is needed.  The developer has requested another extension of the due diligence period.  Since the purchase price in the 2008 agreement was based on an appraisal conducted in 2008, staff recommended, and the developer agreed, that if an extension is granted, the purchase price should be amended and based upon real estate market conditions existing at or near the time of closing of the transaction.  Accordingly, the proposed second amendment calls for an appraisal, at the City’s cost, to be conducted near the time of closing. That appraisal shall determine the purchase price.  The proposed amendment grants the developer an extension of the due diligence period through the April 27, 2019.  If the sale of the property does not close by that date, the agreement is terminated.
Strategic Plan Critical Success Factor		Innovative Infrastructure and Asset Management
Fiscal Impact (Amount/Source):		The fiscal impact of the amendment is zero.  If the sale occurs, the City will pay the cost to have a professional appraisal of the land performed.  At closing, the City will be paid the purchase price of the land.
Attachments:		Second Amendment First Amendment (2013) Staff Memo for First Amendment Agreement for Purchase and Sale of Real Estate (2008) October 2, 2008 Staff Memo for Purchase Agreement October 21, 2008 Staff Memo for Purchase Agreement

Reviewed By: (for CMO use only)

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