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HomeMy WebLinkAboutCC-08-04-14-01 Sale of Property by the CRC; 7th Street NE and 2nd Avneue NE SPONSOR: Councilor Finkam Councilor Carter RESOLUTION CC-08-04-14-01 AN RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL,INDIANA REGARDING THE APPROVAL OF SALE OF REAL PROPERTY BY THE CITY OF CARMEL REDEVELOPMENT COMMISSION WHEREAS, the Common Council of the City of Cannel, Indiana (the "Council") is the fiscal body for the City of Carmel, Indiana(the"City"); and WHEREAS, the City of Carmel Redevelopment Commission (the "CRC") is a governmental entity created and authorized to administer certain redevelopment activities within the City; and WHEREAS, Resolution CC-04-21-14-04, passed by the Council on April 21, 2014, authorized transfer of certain property located at 7th Street NE and 2nd Avenue NE, further described in Exhibit A attached hereto and incorporated herein (the "Property") from the City to the CRC; and WHEREAS, Resolution CC-04-21-14-04 provided that upon the Property's sale by the CRC, the purchase price for the Property shall be mutually agreed upon with the Common Council; and WHEREAS, on May 27, 2014, the CRC received a bid for the purchase of the Property, the details of which are further described on Exhibit B, attached hereto and incorporated herein; and WHEREAS, the CRC has determined that it is now in the best interests of the CRC and the City to effectuate the sale of the Property as proposed in Exhibit B. NOW, THEREFORE, BE IT HEREBY RESOLVED AND AGREED BY THE COMMON COUNCIL OF THE CITY OF CARMEL,INDIANA, AS FOLLOWS: Section 1. The foregoing Recitals are fully incorporated herein by this reference. Section 2. Pursuant to Resolution CC-04-2144-04, the Council hereby approves the CRC's acceptance of Old Town Development L.L.C.'s offer of Sixty Five Thousand Dollars ($65,000) as the purchase price for the Property. Section 3. Old Town Development L.L.C.'s proposed site improvements, as outlined in Exhibit B, have a minimum value of One Hundred Sixty Eight Thousand Dollars ($168,000), which creates a total offer package valued at Two Hundred Thirty Three Thousand Dollars ($233,000). This Resolution was prepared by Ashley M.Ulbricht,Cannel Assistant City Attorney,on July 25,2014 at 10:25 a.m. No subsequent revision to this Resolution has been reviewed by Mr.Haney for legal sufficiency or otherwise. V:SE Bass\Ny Documents\Resolutions-CCC\2014\RESOLUTION-Regarding Sale of Real Property by CRC.docx 7/28/2014 11:20 AM SPONSOR: Councilor Finkam Councilor Carter Section 4. The CRC shall take all steps necessary to effect the sale of the Property between the CRC and Old Town Development, L.L.C. l ISO RESOLVED by the Common Council of the City of Carmel, Indiana, this 9 day of A , 2014,by a vote of to ayes and 0 nays. COMMON COUNCIL FOR THE CITY OF CARMEL il 41.-.C.• a,.......„,'' y:,- /� ......,,,, Pre ifiing Officer Kevin D. Rider - `" 'rte N ©-r pR.Esei n W. Eric •ensticker,Preside t 'ro Tempore Carol Schle / '%yam eC-- �/ frAl R• I e E. Carter Richard L. Sharp 1 .c-4------------ /AA lei. // inkam I •• Sny r If ATTEST: , e Is Diana L. Cordray, IAMC, Clerk-Treat er Presented by me to the Mayor of the City of Carmel, Indiana this �f day of l.Cu , 2014, at 7:6 f Al Diana L. Cordray, IAMC, Clerk- 1 :asurer Li 14- Approved by me, the Mayor of the City of Carmel, Indiana, this day of (111- , 2014, at i SO P Al e• ` es Brainard,Mayor ATTEST: I y % ,r ciLg Diana L. Cordray, IAMC, Clerk-Treasurer This Resolution was prepared by Ashley M. Ulbricht,Cannel Assistant City Attorney,on July 25, 2014 at 10:25 a.m. No subsequent revision to this Resolution has been reviewed by Mr.Haney for legal sufficiency or otherwise. V:\E Bass My Documents\Resolutions-CCC12014\RESOLUTION-Regarding Sale of Real Property by CRC.docx7/28/2014 11:20 AM • EXHIBIT A Legal Description Land situated in the County of Hamilton, State of Indiana,is described as follows: Lot 61 in C. W. Weidler's Subdivision, an Addition to the City of Carmel, in Hamilton County, Indiana,as per plat thereof recorded in Deed Record 113,page 37,in the Office of the Recorder of Hamilton County,Indiana. a i tl°fit ■t! � '•: Mahn OLD TOWN DrVF..I.OPMF. T May 27th 2014 The City of Carmel Redevelopment Commission: Please find enclosed Old Town Development L.L.C.'s("OTD")bid for the purchase"as is"of the 7'h Street NW parcel for Sixty-Five Thousand Dollars($65,000). OTD is the development company for Old Town Design Group,LLC("OTDG")which has developed, designed and built many homes in Old Town Cannel since 2009. MD is owned and managed by Justin W.Moffett(34%),Andrew S.Greenwood(33%) and Jeffrey C.Langston(33%). Mr.Moffett is co-owner of OTDG and Old Town Development, L.L.C.based in Cannel,IN. Mr.Moffett got his start in the land development and home building business in 2004.Mr.Moffett formed OTDG with Mr.Langston at the beginning of the recent U.S recession with a vision of capturing a large market share of the custom and semi- custom home market in Hamilton County,IN.While many other builders were going out of business,OTDG emerged from the recession as a clear front runner in the local market.Mr. Moffett leads the site acquisition&development,new home design,and sales&marketing for the home building group. Mr.Greenwood recently started Old Town Development L.L.C.,based in Cannel,IN, with Justin Moffett and Jeff Langston after working the previous eight years as associate general counsel and lead real estate developer for a leading senior healthcare and living provider in the State of Indiana. During that time Mr.Greenwood also held various executive,operational and management positions within various related party real estate and development entities. Mr.Langston is a co-owner of ODTG,Heartwood Custom Homes,Inc.,and OTD based in Cannel,IN. In 1997,Mr.Langston founded Heartwood Custom Homes,and for the past 17 years Heartwood has thrived as one of central Indiana's premier luxury custom home builders. Mr.Langston leads the construction management team along with serving as the CFO of OTD. Mr.Langston currently serves on the board of directors for the Builders Association of Greater Indianapolis. Most recently OTDG developed and successfully sold 17 lots and custom cottage homes in Blackwell Park Phase I, which is just south of this parcel. Furthermore,OTD has the financial resources,expertise and ability to utilize this ground for its best and highest use and to close on or before July 31,2014. Pursuant to the purchase agreement,OTD shall commit to a)extend 7th Street NE to provide access to the west to 2nd Avenue NE;(b)work with the City Department of Engineering to provide Stormwater Management for existing City infrastructure coming from Exte►ib►t e 9%1of3 pr-.w-.,•...,. ,,. ' � `°�,^':o•+.- mm;.... ,h...,•�... .y+.t rw'�'.'g,, ,ry......, ..}�t=.wy properties to the west;(c)develop a pocket park; and(d)provide for future north-south right-of- way access to and from extended 7th Street NE. While the minimum offering price was $203,750,OTD has valued the property at$233,000 but subsequently reduced its purchase price to$65,000(please see attached statement of sources and uses)to incorporate the commitments and work that is required to be completed with the purchase of the parcel. OTD shall comply with all of the conditions for the acquisition,except for the purchase price.Please also find attached the following exhibits: 1)related party entity list;2)breakdown of OTD ownership;3) evidence of OTD's financial resources;and 4)statement of sources and uses of funds. Thank you for your time and if you have any additional questions or need any other information please feel free to email andrew @oldtowndesigngroup.com and/or call Andrew Greenwood at 317-341- 5909. Yours Truly, ndrew S.Greenwood Old Town Development L.L.C. Member [xhibit- P3 3 .7,0E - - [ y Old Town Development,LLC Sources and Uses for CRC Parcel at 7th Street NE and 2nd Ave NE ConS1rucUon Cosf� OeotochISollslDugnestion 57500 (Phase 1 end soil borings on site) Survey 32.500 (staked survey of properly) Engineering 514.500 (design and staking fees for construction extension of 7th Street NE) Development Permitting&Bonding $2,500 (extension of 7th Street NE) Clearing $8,000 (extension of 7t11 Street NE) Erosion Control 54,000 (extension of 7th Street NE) Storm Water-BMPManagement 538,000 (Run dtystorm water through single phase SMP) Stabilization 52.500 (exosnstm at 715 Street NE) Cutts Sidewalks $15,000 (extension of 71h Street NE) Paving 534,500 (extension of 7M Street NE) Pocket Pork $39,000 (Fence.Playground Equipment.Landscape) Total Hard Coats: $168,000 Cosh Offer: $65,000 TOTAL BID VALUE: x233,000 Ex4ni bit f3 • . ..... * "q p3 {3 9 rx