Title
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH ARLINGTON VALLEY FARMS, LLC, OR ITS ASSIGNEE, FOR THE LLC’S LEASE-PURCHASE OF THE REAL PROPERTY LOCATED AT 5369 HUDSON DRIVE, HUDSON, OHIO.
Brief Description: A Second Amendment to the Land Installment Contract has been requested by the Buyer to change the Closing Date from February 1, 2024 to July 1, 2024 to align with the anticipated closing of a USDA loan financing the purchase. Additionally, monthly installment payments of ten thousand and 00/100 dollars ($10,000.00) would be continued from February 1, 2024 to June 30, 2024.
Body
Legislative History
Previous legislation permitted the purchase of the former RAMCO property and the sale of one of the buildings.
Resolution No. 16-36, authorizing purchase of property located at 5369 Hudson Drive and 1220 and 1239 Hudson Gate Drive, passed March 15, 2016.
Resolution No. 17-49, authorizing the sale of property located at 1239 Hudson Gate Drive, passed March 21, 2017.
Ordinance 17-176 authorizing the proposed amendments to the purchase agreement with Arlington Valley Farms.
Purpose & Explanation
The purpose of the legislation is to allow the City Manager to execute a Second Amendment to the Land Installment Contract with Arlington Valley Farms as requested by the Buyer to align with the anticipated closing of a USDA loan financing the purchase. A summary of the key changes from the First Amendment are shown below.
1. Commencement Date of Installation Payment. Sections 2(A) and 2(B) are herby deleted in their entirety and replace with the following:
A. Commencing April 1, 2018 until November 30, 2019, Buyer shall make no Installment Payments (hereinafter defined) to Seller under this Agreement, except for Buyer’s responsibility for real estate taxes, insurance, expenses related to maintaining the Premises, and any other obligations of Buyer under this Agreement;
B. Commencing on December 1, 2019, and on the first day of each and every calendar month thereafter up to and including January 31, 2024 June 30, 2024, Buyer shall pay to Seller equal monthly installments of ten thousand and 00/100 dollars ($10,000.00) per month (the “Installment Payments”); and
2. Closing Date. Section 15(B) of the Contract is hereby amended by deleting the words “December 1, 2023” from the first sentence of such Section and substituting in lieu thereof the words “February 1, 2024” “July 1, 2024”.
Note, the First Amendment updated the Closing Date from December 1, 2023 to February 1, 2024 as the Seller and Buyer agreed more time was needed to install a water line to the Premise, for the Seller to make certain exterior parking lot repairs, and make certain improvements to the Premise before the Buyer could occupy the space. The proposed Second Amendment further extends the closing date to July 1, 2024.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends passage of this Ordinance to authorize the City Manager to execute an amendment to the existing agreement with Arlington Valley Farms.
Submitted by,
Thomas J. Sheridan, City Manager
Greg Hannan, Community Development Director
Katie Behnke, Economic Development Manager