Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH BENBERY LLC FOR THE PURCHASE OF A 12.1 ACRE PARCEL LOCATED ON STOW ROAD (SUMMIT COUNTY PARCEL # 3009781); AND DECLARING AN EMERGENCY.
Brief Description: The City of Hudson is interested in the purchase of a 12.1-acre parcel located just north of the Ohio Turnpike on Stow Road otherwise identified by the Summit County Auditor as Parcel #3009781. The land is currently owned by Benbery LLC.
The City and the property owner have agreed to a sale price of $350,000 total for the property. The City will pay the property owner a 10% deposit at the signing of the purchase agreement which shall serve as an option to purchase. The option period is for 6 months. After the City’s due diligence is reviewed and approved by Council, the City can exercise the option and close. If the City decides to not move forward, there will be no obligation to close.
Body
Legislative History
None.
Purpose & Explanation
Proposed Real Estate Purchase Agreement
The City of Hudson proposes to purchase from Benbery LLC, a 12.1-acre parcel of land, identified as Summit County Auditor Parcel #30-09781, located on Stow Road. The seller is owned by William Kinney and Bradford Nelson. The agreed-upon purchase price for the property is $350,000.
Key Terms of the Agreement:
1. Earnest Money Deposit:
o The City will provide a non-refundable earnest money deposit of $35,000 to Benbery LLC upon the City's execution of the agreement.
o This deposit will secure the City's exclusive right to purchase the property for a period of six months.
2. Purchase Option Period:
o The City will have a six-month option period to finalize the purchase of the property.
o The purchase price and terms will remain unchanged during this period.
3. Forfeiture of Deposit:
o If the City does not exercise its option to purchase the property within the six-month period, the earnest money deposit of $35,000 will be forfeited to Benbery LLC.
Next Steps:
1. Due Diligence: The City will conduct a comprehensive due diligence review of the property, including title searches, environmental assessments, geotechnical work, and zoning verification.
2. Legal Review: The City's legal department will draft an agreement to ensure it aligns with all applicable laws and regulations following the due diligence.
3. Closing on the Property: Up to a 6-month period following the initial signed agreement, the City will close on the property or forfeit the deposit.
By approving this agreement, the City of Hudson will secure the opportunity to acquire a valuable property asset in the northeast quadrant of the City by our electric substation, the Hudson Schools, and Ohio Turnpike that will benefit the community.
Timing Considerations
Effective with passage of this motion.
Fiscal Impact
Currently Budgeted
X Supplemental Appropriation Required ($350,000; 10% earnest money $35,000)
Appropriation Not Required.
Recommendation
Suggested Action
The City recommends Council approve this request to allow the City Manager to enter into an agreement with Benbery LLC for the purchase of the property located at Summit County Parcel # 3009781 and declaring an emergency.
Submitted by,
Thomas J. Sheridan, City Manager