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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | | AGENDA DATE: | July 26, 2016 |
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| | | | | | | | | SUBJECT: | Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Lease Purchase Agreement to Facilitate the Purchase of the Service Center Property from the Allen Independent School District for a Total Purchase Price of $1,700,000. |
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| | | | | | | | | STAFF RESOURCE: | Eric Ellwanger, Assistant City Manager |
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| | | | | | | | | ACTION PROPOSED: | Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Lease Purchase Agreement to Facilitate the Purchase of the Service Center Property from the Allen Independent School District for a Total Purchase Price of $1,700,000. |
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| | | | | | | | BACKGROUND
Over the past several months, City staff has been negotiating with the Allen Independent School
District (AISD) in an effort to come to an agreement on the acquisition of the old AISD Service
Center property located at 2 Butler Circle, next door to Allen City Hall. The property consists of approximately 6.306 acres with improvements in the form of a 27,940 square foot office warehouse. The City and AISD engaged separate property appraisal professionals to establish fair market value for the property.
Ultimately, AISD agreed to terms on the lower appraisal value which was established by an appraisal report conducted by the Pyles Whatley Corporation on behalf of the City. The Pyles Whatley report established a fair market value of $1.7 million for the property and improvements.
The City's primary purpose in acquiring
the property is to protect the integrity of the municipal complex on Century Parkway and to provide for future expansion of municipal services.
The LPA contemplates the following payment schedule:
- October 1, 2016 - Initial rent payment of $450,000
- October 1, 2017 - second rent payment of $450,000
- October 1, 2018 - final rent payment of $790,000
- On or before January 1, 2019 - Option fee of $10,000 paid to exercise the purchase option and
finalize the sale.
The attached proposed resolution authorizes the City Manager to negotiate and execute a Lease Purchase Agreement with AISD for the property, substantially according to the terms and conditions outlined.
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| | | | | | | | BUDGETARY IMPACT
Funds are available in the Non-Bond CIP Fund to facilitate the Lease Purchase Agreement.
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| | | | | | | | STAFF RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and execute a Lease Purchase Agreement to facilitate the purchase of the service center property at 2 Butler Circle from the Allen Independent School District for a total purchase price of $1,700,000.
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| | | | | | | | MOTION
I make a motion to adopt Resolution No. __________ authorizing the City Manager to negotiate and execute a Lease Purchase Agreement to facilitate the purchase of the property at 2 Butler Circle from the Allen Independent School District for a total purchase price of $1,700,000.
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