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HomeMy WebLinkAbout~Master - New agreement for purchase of 3803 Minnetonka Avenue RESOLUTION NO. 11-136 RESOLUTION APPROVING NEW AGREEMENT WITH HABITAT FOR HUMANITY OF CENTRAL IOWA,INC., FOR PURCHASE OF PROPERTY LOCATED AT 3803 MINNETONKA AVENUE FOR THE CITY OF AMES,IOWA WHEREAS, at its meeting on July 28, 2009, as part of the City's 2009-10 Community Development Block Grant (CDBG) Neighborhood Sustainability Program, the City Council approved the sale of the City-owned property at 3803 Minnetonka Avenue to Habitat for Humanity of Central Iowa(Habitat); and, WHEREAS, the proposed sale was scheduled to occur on or before June 30, 2010, if all conditions of the purchase agreement for the rehabilitation and sale of the property were satisfied; and, WHEREAS, however, during the updating of the abstract to sell the property to Habitat, it was discovered that a second mortgage lien had not been properly cleared and released, which prevented the City from being able to provide clear title; and, WHEREAS, as a result,the City Council has approved several time extension amendments to the Habitat agreement and the early possession agreements with the anticipated homebuyer,the latest agreement being through December 31, 2010; and, WHEREAS,although the Legal staff has been working to resolve the title issue,the contract period expired before the issue could be resolved, and, since that time, staff has been working with Habitat to renegotiate a new purchase agreement; and, WHEREAS, due to the delay in selling the property to Habitat, to compensate for some of the loss of revenue, Habitat is requesting that the City lower the purchase price from $25,000 to $10,000, however, staff is recommending a purchase price of$15,000; and, WHEREAS, additionally, as compensation,the City will not request payment from Habitat until the title has been cleared and a warranty deed is issued at the time of closing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the new purchase agreement between the City of Ames and Habitat for Humanity of Central Iowa for the purchase of 3803 Minnetonka Avenue for a purchase price of $15,000 is hereby approved. ADOPTED THIS 22"d day of March, 2011. zzzz Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Mahayni Voting aye: Davis, Goodman, Mahayni, Orazem, Wacha Voting nay: None Absent: Larson Resolution declared adopted and signed by the Mayor this 22"d day of March, 2011.