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Project Budget <br /> Please see that attached 2-page project budget. The overall project budget covers all costs. The due-diligence <br /> project budget only covers costs incurred to the City before closing. <br /> From an overall project budget perspective,we are trending in the right direction(down slightly). From a <br /> due-diligence budget perspective, costs are trending higher. The reasons costs are higher, for the due diligence <br /> budget, is for two reasons: <br /> First, staff's proposed strategy on the Phase II ESA/tank removals has changed.We are proposing to remove <br /> the tanks before closing on the purchase of this property(i.e. during the due diligence process). Although it <br /> may appear this is a"new"project cost, it is not entirely—staff originally anticipated removing the tanks <br /> after closing, during demolition. Second,the cost to remove the tanks, and complete the required State <br /> testing/documentation,was more than staff originally anticipated. <br /> Recommendation: <br /> Please see attached email MEMO from the City Attorney. <br /> Staff recommends moving this project forward, and approving the attached purchase agreement. The major next <br /> hurdle is removing the underground petroleum tanks and completing the Phase II ESA. If that process is clean,we <br /> should be in a good position to close on the purchase. If not,we will need to bring back this case for further <br /> discussion (i.e. what is the scope of contamination/remediation?how do we clean up the site?what will the <br /> funding source be?, etc.) <br /> Action: <br /> Motion to: <br /> Approve the attached agreement with Series Sunfish of Athans Holdings, LLC for the purchase of Lot 2, Block 1, <br /> Sunfish Commons; subject to final review and amendments by the City Attorney. <br /> --and-- <br /> To authorize staff to complete final due-diligence: including removing the underground storage tanks and <br /> completing a Phase II ESA. <br /> Purchase Agreement Status <br /> Attached to this case is the current draft of the purchase agreement. This agreement will be updated on <br /> Monday 01/23. Staff,various attorneys, and the buyer are currently negotiating final details. <br /> Attachments <br /> Final Clean PA <br /> Pre Demolition Survey <br /> Phase I ESA <br /> PHASE 11 ESA (proposal) <br /> Appraisal <br /> Title Work <br /> Attorney Email <br /> Budgets (2 pages) <br /> RALF Application (draft) <br /> Braun Comments <br /> Seller Redline PA <br /> Buyer Redline PA <br />