Olivia council approves purchase agreement with Olivia Chrysler Center, contingent on lease actions

The Olivia City Council voted to approve a purchase agreement with the Olivia Chrysler Center on a resolution that conditions closing on termination of the current lease and execution of a new lease for the portion of the building the city occupies.

Pam, a city staff member who presented the item, said negotiated language in paragraph 14 requires that any future street or property vacation will follow statutory notice rules and a public hearing so the future council may decide after hearing from the public. She told the council the purchase price is reduced to reflect the city's HVAC cost share and that “they [are] proposing April 15th for closing” and that “the due diligence period is 45 days and that starts the 45 days starts after the city provides them with a title survey.”

The resolution in the packet authorizes approval of the purchase agreement but is explicitly contingent on the negotiation and council approval of two further documents: a termination of the existing lease with the current tenant and a new lease naming the city the tenant for the occupied portion of the building. Pam said those two documents would be reviewed and must be approved by the council before any closing could occur.

Council members moved and seconded the resolution and recorded the motion as carried. The council did not state a specific dollar amount for the purchase price in the meeting; Pam said the reduction equals the city's HVAC cost share but did not provide a figure during the discussion.

Staff said closing and the start of the buyer's 45-day due-diligence window depend on the city delivering a title survey; the council will receive and must approve the termination and new lease documents before any closing. No other formal amendments were adopted during tonight's discussion.