09/18/2001 CC RPT 08 - Laserfiche WebLink

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, CITY OF RIVERSIDE COUNCIL/AGENCY MEMORANDUM Honorable Mayor & City Council and Redevelopment Agency Date: Item No.: September 18, 2001 8 Subject: ,Joint Public Hcaring to Cnnsider Agreemcnt of Purchase and Salc and Escrow Instructions Between the Redevelopment Agency and Finn L. Comer and Holly Lyn Comer, and Christian E. Singleta!')' and Ru Anna Singletary - Merged Downtown! Airport Industrial Project Area Background In 1988. thc Rcdcvclopmcnt Agency acquired 2,5 acres of property, comprised of two adjoining parcels (the "Property"), located at 8856 Arlington and 8855 Philip Avenues in the Airport Project Area (see Exhibit "A" attached I This transaction was a result of an Owner Participation Agreement "OPA"), which the Agency entered into with Rohr Industries III February of that same year to facilitate Rohrs expansion plans. However, a dispute ensued as to caeh party's performance under the terms of the OPA, which resulted in the Agency retaining the Propert y. Current Issue Per court stipulation, the Agency has attempted to market and sell the Property, including listing the Property with various local real estate brokers. over the past 10 years: however, the Agency was unable to sell the Property. It is hl'lH,:vl'd that the Property has been difficult to market because of its location, which is isolated and removed from the con.' ufthe Airport industrial area. However. as a result of staffs recent efforts to once again attract a listing bwkcr. the Agency received a private olTer. The husiness points that constitute the transaction and arc contained in the attached Agreement of Purchase and Sale and Escrow Instructions ("Agrecment") are as follow: . Sale Pricc S220,000 . hcn", Deposit: $10.000: refundable within ~5 days if Buycr cancels Escrow: atier ~5 days, but before 90 Ja\:-.. I,,~ rcfundablt: if Auyer cancels Lsero\\. . Dc", n pCl\Illent: $56.600 (includes Deposit) . ] ,( Trust Dced: $163,400, pavable at 6.5 percent simple annual interest over a tlve (5) year period, interest nnly paymcnts due quarterly. with the balance due \vithlll 60 months . .::nd Trust Deed. $6,600. \vith no payments during thl' fivc (5) year:-.. forgivable. unless Buycr defaults . Hnd\cr commission: Agency will pay $6.600 in the escro\\ procl:ss . Agency III convey the property in an "as is" condition. . Buyer will develop the property within five (5) years consistent with City's existing land use and zoning regulations and ill compliance with the Redevelopment Plan: in the event the Property is not developed, /\g.ellcy has right of first refusal to repurchase the Property at the original sale price of $220,000. . I:easibility Period: Ruy-er to have 90 days from opening escro\v to investigate the condition of the Property Analysis rhe i\gclley purchased the 2.5-acre property in 1988 at a total cost of $570JHHL or approximately $5.25 per square foot. with fUllds advanced by Rohr. After marketing the Property for over a decade, the Agency has recei\cd a finn offer of $220.000. or approximately $2.00 per ~quare foot. Given that the Agency has utilized a nUlllber uf reputable real estate professionals to market the Property_ and that the Property has been on the market for <In c\.tended lcngth oftimc, it has been determined that the offer reflects the fair market value of the Property. 8-1