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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 230657
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Sponsor: City Manager
Authorizing the City Manager to execute a real estate sale contract with Grayson Communities, LLC for the sale of surplus property located at 1531 Holmes Street; estimating revenue in the amount of $400,000.00 for the sale of surplus property; and to negotiate and execute an equity participation agreement for future payments related to 1531 Holmes Street.
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WHEREAS, the City of Kansas City, Missouri owns a parcel of property located at 1531 Holmes Street in Kansas City, Jackson County, Missouri (the "Property"); and
WHEREAS, the City Council adopted Ordinance No. 220254 on April 28, 2022, declaring this property surplus to the City's needs and authorizing the sale of the Property subject to reserved easements and other rights;
WHEREAS, the City Council adopted Ordinance No. 220964 on November 3, 2022, authorizing the City Manager or his designee to negotiate and execute a development agreement and purchase option agreement with Grayson Capital, LLC ("Grayson Capital") or its affiliates for the Property;
WHEREAS, the City and Grayson Capital entered into a Purchase Option Agreement for the Property dated November 30, 2022;
WHEREAS, Grayson Capital has exercised its option to purchase the Property and the City and Grayson Capital, through its affiliate Grayson Communities, LLC, now seek to enter into the real estate sale contract;
WHEREAS, the City and Grayson Capital have negotiated the real estate sale contract establishing pre-development benchmarks required to be completed prior to closing and a purchase price of $400,000.00, plus future payments to the City between $500,000.00 and $2,100.000.00, depending on profits earned by Grayson Capital, that shall be made pursuant to an equity participation agreement between the City and Grayson Capital;
WHEREAS, Ordinance No. 220964 stated...
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