Laserfiche WebLink
B. City Purchase of Land. Under this option the City would secure an option to purchase <br /> the property directly using funds from the Lower Income Housing Fund. The City <br /> could hold the land until the disposition of Kottinger Place redevelopment project has <br /> been determined or until the City determines a use that would be developed in <br /> cooperation with a developer selected by the City. If it was determined that a <br /> development was not in its best interest, the City would not exercise its option. [A <br /> similar option would be to purchase the property without securing a purchase option. <br /> The owner has not indicated a sales or option price but staff estimates the sales price <br /> to be about $2.5 million.] Option B potentially has the following benefits: <br /> <br /> · The City would negotiate a purchase price at this time that would potentially be in <br /> its favor depending on inflationary land costs. <br /> · The City would have a significant degree of control over the development of the <br /> land. <br /> <br /> The potentials drawbacks to this option include: <br /> <br /> · The cost of the purchase option (the amount of the option has not been discussed <br /> with the Auf der Maur's). <br /> · The City would lead the process of developing the land without a good <br /> understanding of neighborhood interests. <br /> · Potential costs, including all predevelopment funding and predevelopment activity <br /> related to a City development, and the financial contributions for permanent <br /> financing. <br /> · The City does not have any experience with land-banking. <br /> <br /> C. City-Owner/Developer Collaboration. The City would express to Mr. Auf der Maur <br /> an interest in working cooperatively on the development of the property in a number <br /> of areas, including approving the owner's selection of a nonprofit developer, <br /> providing some predevelopment funding, and agreeing to consider a permanent loan <br /> to accommodate project affordability. Option C potentially has the following <br /> benefits: <br /> <br /> · The City is directly involved as a "partner" through the development process. <br /> · The City is in a position to affect the use of the property. <br /> · The City would not directly be involved with "leading" the development effort. <br /> <br /> The potential drawbacks to this option include: <br /> <br /> · The potential predevelopment and permanent financing costs. <br /> · The City's active role in a development process for a project not "owned" by the <br /> City. <br /> · Inconsistency with Mr. Auf der Maur's current direction related to development <br /> options for the property. <br />SR:05:080 <br />Page 4 <br /> <br /> <br />