The City entered into a contract to sell the vacant lot located at the corner of Oglethorpe Avenue and Habersham Street to the Geyer Morris Company for a price of $5 million.  The property being sold includes a former lane that was closed by a previous Council and sold to a prior developer many years ago. The lane no longer exists.  However, the City is seeking to acquire and restore the lane.  Therefore, an Amendment has been negotiated to govern the following:

• The City will acquire the lane land.  At closing, the purchase price will be adjusted to reflect a credit equal to the square footage of the lane (to be determined) multiplied by $97.17 per square foot.
• A development agreement will be finalized whereby the Buyer will restore and develop the lane in exchange for payment of contruction costs and grant of encroachments.
• The City will reimburse Buyer up to $225,000 for actual costs spent on development plans that are no longer viable due the acquisition of the lane by the City.

Real Estate Services and Assistant City Attorney’s office have review this amendment and recommend approval.

Approval.