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�� � REQUEST FOR COUNCIL ACTION Department Ap�roval � �� .�- Item Description: Owasso Ballfields Purchase Agreement BACKGROUND Date: October 5, 2015 Item No.: 8.h City Manager Approval At its June 10, 2015 meeting, the City Council met in Closed Session to discuss potentially purchasing a portion of the former Owasso School property (currently occupied by the Owasso Ballfields). Staff was directed to negotiate a purchase agreement for this property. Staff has been negotiating with United Properties on this purchase. United Properties has been selected by the Roseville Area Schools District 623 as the developer for the former Owasso School property. The staff level negotiations have been completed and the City Attorney has been working with the developer's attorney to create the draft purchase/sale agreement and access/parking easement agreement (Attachments B and C). United Properties has indicated that it agrees with the terms of these draft agreements. Some of the key business points of the proposed agreements include the following: • The purchase price will be $875,000, with $50,000 in earnest money due upon execution of the agreement and applied to the purchase price at the future closing. At closing, an additional $125,000 will be required for the purchase. The City will also have additional transaction costs related to closing. • The 0.3 acre parcel the City owns on Lexington Ave. will be deeded over to United Properties with the City able to negotiate rights to reserve access to serve surrounding properties within 30 days of the effective date of the agreement. •$350,000 of the purchase price will be deducted from the purchase price and given as a credit to United Properties in lieu of payment of future parlc dedication fees of 100 units for its development on a portion of the Owasso land (Applewood Pointe). •$350,000 of the purchase price will be deducted from the purchase price and given as a credit to United Properties in lieu of payment of future parlc dedication fees of 100 units for its development at Lexington and Woodhill (Cherrywood Pointe). • The typical contingencies such as title, environmental, and survey review are included in the agreement. • United Properties will construct and maintain 60 parking spaces on its land for use by the visitors to the Owasso ball fields. • The City will only lose the right to use the parking area if the City land is no longer used as a park (such as if the City sold the parcel to a developer). However, the Ciry will Page 1 of 2