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