Committee approves land sale substitute after developer agrees to reimburse CDBG shortfall

Committee members approved the substitute for the land sale (item 20250876) after staff reported the developer agreed to cover a CDBG funding shortfall and a committee amendment increased the purchase price to reimburse the city.

Staff summarized the substitute: revised parcel size (~2.49 acres), updated assessed value ($3,217,874.20) and purchase price ($2,547,513.60), and clarified that $496,537.10 of the purchase price repays prior CDBG funding. Ed Randolph (OED) reported the developer agreed to cover the CDBG shortfall and pay additional funds to ensure repayment; Randolph said the developer would pay roughly $3,000,000 for the property.

Council members then moved an amendment (the Boylan/Boiling amendment) to increase the purchase price by $496,537.10 so the city would be repaid for its CDBG disbursement; the amendment was restated in the record (new purchase price $3,044,050.70), passed, and the committee approved the substitute as amended by recorded ballot (7 yeas, 0 nays). The substitute includes a provision prohibiting transfer of the parcel to a tax-exempt entity and a three-year minimum ownership restriction (with limited foreclosure exception).