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Item No. 7 <br />memo�andum <br />TO: Mayor & Council <br />FROM: John Godwin, City Manager <br />SUBJECT: FORMER POLICE BUILDING <br />DATE: March 4, 2013 <br />BACKGROLJND: Public property may generally be sold in one of three manners — to a <br />contiguous properiy owner through negotiations, in a public auction, and following requests for <br />bids opened and read aloud publicly. In an effort to sell the former police building, located at <br />811 Bonham Street, for productive use, we twice advertised the site for sale in a newspaper of <br />general circulation. At 3:00 p.m. on Monday, March 4, 2013 we opened the single bid received <br />and read it aloud. <br />STATUS OF ISSUE: That single bid, from the Atwater Group out of Chicago, was in the <br />amount of $175,618. This exceeds our best available estimate of the market value, which by <br />state law is the minimum amount for which public real estate may be sold. Therefore, we have a <br />completed process and a qualified bid. According to the submitted Letter of Intent the purchaser <br />has 120 days following execution of a contract to inspect the site and all property information, <br />plus two thirty-day extensions. Closing is to occur thirty days after the inspection period. The <br />LOI must be executed by the city and returned to the bidder by March 13. As indicated <br />previously, the bidder intends to demolish the existing structures and build a new retail structure <br />on this site. <br />BUDGET: These are unbudgeted and unanticipated revenues. <br />RECOMMENDATION: Award sale and authorize execution of all required closing documents <br />to the Atwater Group in the amount of $175,618. <br />- 29 <br />