CCP 07-31-2007 sp mtg - Laserfiche WebLink

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Report Number: Agenda Section: VReport Date Jul 27 2007 the city that works for you Council Meeting Date July 31, 2007 Is REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Consideration of Term Sheet with Ryan Companies for Transoma Medical, Inc. Office Project DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached cE1__ Recommendation: Approve a term sheet with Ryan Companies for Transoma Medical, Inc. office project and authorize staff to begin preparation of a Contract for Private Redevelopment. Legislative History: None Financial Impact: Analysis is provided below. Explanation: Since the work session on Tuesday, July 24t", staff has been talking with the Ryan Companies about the option parcel for the Transoma project. After several rounds of discussions, we believe a compromise position has been reached. Ryan is prepared to pay $300,000 for the option property. The deal would be structured as follows: • Ryan would have the right to purchase the option parcel with no additional option money until August 15, 2010. The company would need to either purchase the option parcel or pay an option fee as described below. • In order to maintain option rights, Ryan would need to pay $100,000 on or before August 15, 2010 which would extend the option rights until August 15, 2011. All option money paid would be applied toward the purchase price, if Ryan bought the land before August 15, 2011 or paid additional option money. The option money would be forfeited if neither event happened. • In order to maintain additional option rights, Ryan would need to pay $200,000 on or before September 1, 2011 which would extend the option rights until September 1, 2012. All option money paid would be applied toward the purchase price, if Ryan bought the land before August 15, 2012. The option money would be forfeited if Ryan doesn't close on the property.