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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 II 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 />