Council reviews proposed sale of three city parcels to Rescue Mission; administration says MOU will be executed before title transfer

City staff presented a proposed purchase-and-sale agreement conveying three city-owned parcels to the Rescue Mission so the nonprofit can construct a mixed-use building. The administration described parallel negotiations over a memorandum of understanding (MOU) that will address operations, use of adjacent green space, coordination with law enforcement and county-funded services.

Eric Annis, Neighborhood and Business Development, said the MOU would be signed and executed prior to transfer of real title: "MOU would be signed and executed prior to transfer of the real title on the property." Sharon Owens, Deputy Mayor, said the administration has been meeting with the Rescue Mission, the police department and county partners to craft the MOU and related operational agreements. She said the Rescue Mission agreed to operate on-site meal distribution only for identified clients, rather than mass public meals, as part of changes intended to reduce street-side congregation.

Councilors asked about potential tax exemptions and pilot programs, whether the Rescue Mission would seek tax exemptions under nonprofit rules, and what concessions or operational controls the city would require. Staff said they had not seen documentary evidence that the Rescue Mission's program would qualify for a nonprofit tax exemption and that any pilot or tax-exemption discussion would follow standard procedures. The administration said the MOU negotiations and required agreements are progressing quickly and that staff expect to have the MOU executed before title transfer; councilors agreed to hold the item until Monday to resolve any remaining questions.

No final sale or transfer had been recorded in the transcript excerpt. Councilors requested copies of the MOU when executed and asked staff to coordinate further with county partners and police about operations and neighborhood impacts.