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REQUEST FOR COUNCIL ACTION
ORDINANCE: O-2009-35
SUBJECT: Authorizing the City Manager to execute financing and acquisition documents, and a supplemental budget appropriation for the acquisition and improvements of 870 Parfet Street, Lakewood, Colorado for Public Safety use. Further authorizing the City Manager to execute a permanent access easement and revocable license agreement, for access purposes, across City owned property at 1050 Quail Street, Lakewood, Colorado.
ADDRESS: 870 Parfet Street, Lakewood, Colorado
RECOMMENDATION: Adoption of the ordinance will allow the City to acquire and provide immediate improvement needs for the facility for Public Safety use including expansion of the police academy toward a regional training facility. The Seller is The Schmidt Family L.L.L.P. (a Colorado Limited Liability Limited Partnership). In addition, the ordinance will facilitate the related changes to the City budget.
FUNDING SOURCE: Lease Purchase financing agreement with Municipal Capital Markets Group, Inc. at a rate of 4.49% for 20 years
SUMMARY AND BACKGROUND OF SUBJECT MATTER: This Ordinance authorizes the acquisition of 870 Parfet Street with funding from Municipal Capital Markets Group, Inc. for $2,330,000 for the acquisition and improvements needed at 870 Parfet Street. The acquisition costs are $1,900,000 and the improvements are estimated at $430,000. The acquisition will take place in July, 2009 following acceptable results on the due diligence process in accordance with the Purchase and Sale Agreement between the City and the Seller. There will be a supplemental appropriation to the City's 2009 Budget in the amount of $2,330,000.
The City’s independent financial advisor, Piper Jaffray & Company, has reviewed the lease proposals obtained through a public request for proposal process. Piper Jaffray has advised the City that the selected lessor provided the most favorable terms and conditions as compared to the other respondents and the general marketplace.
In addition, a portion of the facility, at a later date, is expected to be used for expansion of the police academy. In order to fund the move of the police academy, the City building located at 1955 S. Kipling Street will be sold. An appraisal of the 1955 S. Kipling Street building will determine the amount available for the new police academy location. The funding required will be determined at a later date with the intent that the sale of the building on 1955 S. Kipling Street will offset the cost of equipping the new location.
Vehicular access to the rear of the proposed property at 870 Parfet Street requires encroachment onto the adjacent property at 938 Parfet Street (owned by W. Herb L.L.C.). Likewise, access to the rear of the property at 938 Parfet Street requires encroachment onto existing City property at 1050 Quail Street and the proposed property at 870 Parfet Street. Concurrent with the acquisition of the property at 870 Parfet Street, the City will receive a permanent access easement across the 938 Parfet Street property. In exchange, the City wishes to convey a permanent access easement, along with a revocable license agreement, for access purposes, to the owner of 938 Parfet Street.
PROJECT DESCRIPTION: Acquisition, improvements, and financing of 870 Parfet Street
DATE OF FIRST READING: July 13, 2009
DATE OF SECOND READING AND PUBLIC HEARING: July 27, 2009
ORIGINATED BY: Michelle Tovrea, Division Chief
STAFF PERSON RESPONSIBLE: Michelle Tovrea, Division Chief 303-987-7302
DOCUMENT(S) ATTACHED: O-2009-35 AMENDED
Aerial Map of 870 Parfet Street, Lakewood, CO
Principal and Interest Schedule
Purchase Agreement
Purchase Agreement Amendment 1
Purchase Agreement Amendment 2
Lease Purchase Financing Agreement
SUBMITTED BY:
Michelle Tovrea, Division Chief
REVIEWED BY:
Joni Inman, Director, Mayor’s and City Manager’s Office
Michael J. Rock, City Manager
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