Title
Consideration of the Purchase of Property Located at 1735 and 2551 Central Avenue, Commonly Known as CB Fox and Reel Deal
Recommended Action
Option A:
I move that the Council approve Amendment No. 1 to the purchase Agreement extending the Inspection Period for 30-days until April 21, 2021.
Option B:
I move that the Council elects to terminate the executed purchase Agreement and directing the County Manager to provide written notice of termination to Seller and Escrow Holder on or before the expiration of the Inspection Period.
Body
In December 2020, the County entered into a purchase agreement to purchase the CB Fox and Reel Deal properties for strategic needs, and an opportunity to influence more beneficial use of the properties than contemplated by private development. The agreement execution started a 90-day due diligence, or Inspection Period, where the County staff and design consultants would investigate the existing conditions, restrictions, and opportunities. This initial due diligence period will expire on March 21, 2021.
The seller has agreed to an amendment to the purchase Agreement (Attachment B) that will extend the due diligence and the Earnest Money becoming non-refundable for an additional 30-days. The purpose of this extension is to finalize a solution to the shared parking ownership tied to the CB Fox property. At present this issue is still unresolved, yet there is active conversation between the parties' attorneys regarding potential solutions. If Council wishes to continue to pursue the purchase of the two properties, approval of the attached amendment is recommended.
Staff presented a due-diligence progress update to the Council on February 16, 2021. During that work session discussion, Council expressed their interest in information related to the various scenario estimated development costs, opportunities and risks, and broader community economic development benefits. The future mix of programmatic uses that would be preferab...
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