TOWN COUNCIL TOWN COUNCIL AGENDA DOCUMENTATION
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1 TOWN COUNCIL TOWN COUNCIL AGENDA DOCUMENTATION PREPARATION DATE: April 12, 2010 MEETING DATE: April 19, 2010 SUBMITTING DEPARTMENT: Administration DEPARTMENT DIRECTOR: Bob McLaurin PRESENTER: Bob McLaurin SUBJECT: Buy Sell Agreement with The Grove LLC PURPOSE OF ITEM The purpose of this item is to approve a buy sell agreement with the Grove LLC to purchase the property commonly known as The Grove. BACKGROUND For a number of years the Town of Jackson and Teton County, the owners of the START Transit system have been looking for a site to locate a facility to provide indoor storage for the transit fleet and to accommodate expanded fleet maintenance services for the system. As the town and county elected officials have discussed on numerous occasions, a new facility is necessary in order to minimize maintenance costs and accommodate any future expansion of service. Future service expansions could include service to the Airport, GTNP and increased frequency to Teton Village). In 2006, the START board commissioned a study to quantify space needs and to identify a site for an expanded facility. This study was conducted by Jorgensen Engineering. They analyzed a number of sites for this facility including an expansion on the existing Public Works site. After careful analysis, the study recommended the western portion of the Karn s Meadow as the most suitable location for an expanded START facility. This property has been owned by the Teton County Housing Authority since Over the past few months there have been numerous discussions with the Town Council, Board of County Commissioners and the Housing Authority about acquiring the Karn s Meadow site. The Housing Authority Board has been unwilling to sell the Karn s Meadow property outright, but have indicated a willingness to exchange the property for a site that would provide comparable opportunities for workforce housing. Concurrently with our discussions with the Housing Authority staff, the Town has been pursuing the purchase of a parcel that could be used to exchange with the Housing Authority for the Karns Meadow. Specifically, we have been meeting with the owners of The Grove (the vacant parcel adjacent to the Teton County Library), to determine whether the Town could acquire this parcel for this exchange. After months of discussions, we believe we have reached an agreement to purchase the Grove for $6,187,500. The buy sell agreement which is attached to this staff report is the formal offer to purchase The Grove parcel. ALIGNMENT WITH COUNCIL S STATEMENTS OF STRATEGIC INTENT This property purchase, property exchange, and the building of a START facility supports a number of the Town Council s Strategies. Specifically, these actions support Environmental Stewardship Economic Sustainability
2 Town as Heart of Region The acquisition of a site for START supports the Council s goals of minimizing dependence on automobiles; it supports the town and county s energy efficiency efforts, and generally provides for a more efficient transit system. With the site being located in Town, it will minimize dead head miles. Less fuel will also be used for warming up vehicles and less energy will be used because we will not be parking vehicles outside and plugging them in. FISCAL IMPACT The fiscal impact of this action is $6,187,500. The offer includes $50,000 in earnest money. Should the Town not close on this transaction, thee funds would be forfeited and retained by the seller. We are proposing to fund this acquisition from borrowing from several of the town s funds and from spending down some of the fund balances. State of Wyoming Over the Cap Funds $2,000,000 Internal Service Fund Loan $500,000 Transfer from Capital Project Fund $1,187,500 Transfer from 2006 SPET $2,500,000 Once this property has been acquired, we expect to execute a land exchange agreement with the Housing Authority. It is staff s understanding that the Housing Authority intends to use the existing entitlements on The Grove parcel to develop an affordable housing project. When the property exchange is complete, the 4 acres (of the 5.75 Karn s Meadow site) would be used for an expanded START facility. The Town would sell one half of the four-acre site to Teton County for their portion of the START facility. This 4 acre site would then be leased to START for the new facility. START would make annual lease payments which will be used to repay the Town and County funds used for the purchase. The Town would retain 1.75 acres for future municipal needs. STAFF IMPACT The staff impact of this property purchase in and of itself is minimal. It will require review and execution of closing documents by the Mayor, Town Attorney and Town Clerk. The staff impact of the forthcoming land exchange for the purpose of providing a site for a START Facility is positive in that START will eventually have a site for storage of buses and fleet maintenance. LEGAL ISSUES The buy sell agreement was prepared by Mullikin Larson and Swift and has been reviewed by the Town Attorney. ATTACHMENTS The buy sell agreement is attached to this staff report. RECOMMENDATION Staff recommends the Council approve this agreement as presented and authorize the Mayor to execute the agreement. SUGGESTED MOTION I move to approve the buy sell agreement with The Grove LLC as presented and authorize the Mayor to execute the agreement. SYNOPSIS FOR POWER POINT Purpose: The Town Council approves any property purchases for the Town of Jackson. Background: Over the past few months, the Town and County have been discussing a way to purchase the Karns Meadow site for a START facility or to purchase a parcel that could be swapped
3 with the Housing Authority for the Karns Meadow site. Representatives from the Town of Jackson have been meeting with the owners of The Grove (the vacant parcel across from the 810 West neighborhood), to determine whether the Town could acquire this parcel for this exchange. After months of discussions, we believe we have reached an agreement to purchase the Grove for $6,187,500. With the Housing Authority s willingness to exchange land for the Karns Meadow and the Town s intention to purchase The Grove, an agreement is now necessary. The Housing Authority indicated they would be willing to exchange the Karns Meadow parcel for The Grove parcel. Fiscal Impact: The fiscal impact of this purchase is $6,187,500.
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