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City attorney outlines LOI terms for 3021 Loner Road; prospective buyer plans a sleep clinic
Summary
City attorney updated council on a letter of intent for 3021 Loner Road: a $5,000 nonrefundable earnest payment and $15,000 in due-diligence expenses could extend the buyer's exclusivity to 90 days if verifiable expenses are shown.
Hoover City discussed a letter of intent (LOI) for property at 3021 Loner Road after staff reported conversations with a prospective buyer who plans to develop a sleep clinic there.
Mister Waldrop told council that the prospective buyer (Mister Casanova) was not present due to illness but has proposed a contract framework the city reviewed. Waldrop recommended a $5,000 nonrefundable earnest deposit held for 30 days, during which the buyer would conduct due diligence; if the buyer provides verifiable invoices showing at least $15,000 in due-diligence expenses within that 30-day window, the city would take the property off the market for an additional 60 days (a total of 90 days) to allow the buyer to secure financing. Waldrop emphasized the $15,000 could be for architectural fees or a phase 1 environmental assessment.
Council members asked about whether the 48-hour closing requirement would be affected and whether an extension past 90 days could be written into the contract; Waldrop said extensions were a practical business decision that could be included if the council desired and that if the buyer met the stated commitments the property would be off the market for 90 days.
