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1 Ogden Redevelopment Agency Meeting: August 22, 2017 REAL ESTATE PURCHASE CONTRACT - COURTYARD INN MOTEL – 445 25th Street - Tax ID #01-015-0023 (0.22 Acres) Action: Approve or Not Approve Resolution Executive Summary The Board will consider a Resolution authorizing the purchase of the Courtyard Inn Motel located at 445 25th Street. Purchase price is $970,000, with $200,000 to be paid at closing. The Resolution also authorizes a Promissory Note for the remaining $720,000 with payment due approximately one year from the closing date. If the transaction is approved, the Administration plans to demolish the building sometime after final payment is made. The property will be developed as a plaza area for the emerging Arts District. Background July 11, 2017 The Board Office received an Administrative Transmittal requesting approval of the purchase of the Courtyard Inn Motel located at 445 25th Street. Proposal The Administrative staff is proposing the purchase of property located at 445 25th Street located on the southwest corner of 25th and Ogden Avenue. The Courtyard Inn Motel (Courtyard) has 22 motel units and operates as an extended stay motel with residents staying up to thirty (30) days. The property has generated a significant number of code violations and a high volume of police calls for many years. The Administration has entered into a Real Estate Purchase Contract. A summary of the REPC follows: Sellers: Jayhoun S. Saissan and Jalal A. Afnane Description: Tax ID # 01-015-0023 (0.22 acres) Purchase Price: $970,000 Terms: $50,000 Earnest Money (applicable to Purchase Price), Due July 11, 2017 ---PAGE BREAK--- 2 Ogden Redevelopment Agency Meeting: August 22, 2017 Cash Due at Closing $200,000 Promissory Note for $720,000 to be paid within one year of Closing Closing Costs: Fees shall be split equally, Seller pays commissions. Closing Date: Not later than October 2, 2017 Staff has estimated project costs as follows: Purchase: $ 970,000 Closing Costs: $ 10,000 Demolition: $ 85,000 Contingency: $ 30,000 Total Project Cost $1,095,000 The Administration has indicated the site will be developed into a plaza as a transition space to the arts district. Funding The Administration has proposed using funds from BDO Lease Revenue for the purchase. The FY18 RDA Budget included $250,000 to cover the initial purchase costs associated with the project. Any remaining funds will be retained until the Agency takes possession of the property and used for remaining project costs. Attachments Plat Map – 660 W. 24th Street Google Street View – 445 25th Street Questions Please review the terms of the REPC and Promissory Note and explain how purchase of this property supports the goals and objectives of the Agency. Council Staff Contact: Janene Eller-Smith, (801)629-8165 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- 2017-7 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---