Resolution 6561 - Laserfiche WebLink

Resolution No. 6561 A RESOLUTION REGARDING PROPERTY TRANSACTION WITH TOUCHSTONE CORPORATION WHEREAS,the City Council finds and concludes: A. The City has recognized a responsibility to promote the vibrancy of the downtown core, and it is a policy of the City that, where possible,the development of the downtown core will be fostered. B. The City owns certain real property situated at the southeast corner of Wall Street and Colby Avenue(the"Property"). The Property is directly west of the Police Precinct, adjacent to the Culmback Building and is within a block of other City-owned properties, including the Wall Street Building. The Property is currently used as a surface parking lot with 54 spaces for City employees. C. In 2007,the City issued a Request for Proposals from qualified developers to purchase and develop a mixed-use building on the Property. On June 11, 2008,the City awarded the RFP to Touchstone Corporation on the basis of its proposal for building a hotel on the Property. D. On October 15, 2008,the City Council declared the Property surplus and authorized the Mayor to execute a purchase and sale agreement with Touchstone for the Property for$1.6 million. The appraised value of the Property,as shown by appraisal dated May 18,2007,was estimated between $1.2 million and $1.4 million. E. Since the execution of the purchase and sale agreement on October 16, 2008,the purchase and sale agreement has been amended by nine amendments, authorized by City Council from time to time. These amendments reflect the evolution of the transaction in response to due diligence, the availability of equity and construction financing,and the recession. F. City staff and Touchstone have negotiated a tenth amendment to the purchase and sale agreement(the "Tenth Amendment"). Under the terms of the proposed Tenth Amendment,the transaction is scheduled to close on December 18, 2012. G. The purchase price for the Property will remain $1.6 million,which Touchstone will provide in the form of the following consideration, as set forth in the Tenth Amendment: 1. Touchstone will record a parking easement, in the form attached to the Tenth Amendment,which grants the City the right to 48 parking spaces on the Property within the hotel parking garage. City staff has estimated the value of the indoor parking spaces at approximately$33,000 per space, based on estimates of the costs of constructing such parking. Based on the 48 parking spaces granted under the parking easement,the value of the completed parking spaces granted to the City in the hotel garage will be approximately$1.6 million. 2. Touchstone will record a project construction covenant encumbering the Property, in the form attached to the Tenth Amendment,which requires Touchstone to construct the hotel project in accordance with City-approved plans and specifications, requires Touchstone to complete construction within