1. City Council
Regular Session
December 12, 2013

2. 
October 2008
◦ Council Direction: Purchase Chimney Hill for $9,600,000

July 2011
◦ Staff presentation regarding surplus land holdings
◦ Council Direction: Move forward with disposition

Summer/Fall 2011 – City receives unsolicited interest

January 2012
◦ Council Direction: Do not subdivide; Sell the entire site

3. 
September 2012

February 2013

Spring 2013 – Evaluation; Staff interviews; Recommendation

June 2013
◦ Continue to receive unsolicited interest
◦ Council Direction: Issue ‘Request for Interest’
◦ Seven Statements of Interest received
◦ Council Direction: Engage Economic Development Committee
◦ ED Committee and staff recommend PM Realty Group
◦ Council Direction: Begin negotiations with PM Realty Group

4. 




City and Research Valley Partnership
Research Valley Partnership and PM Realty Group
Purchase Price:
Earnest Money:
Inspection Period:
$7,500,000 (HOT Fund)
$50,000
150 days

5. $7,500,000
+ $1,500,000
$9,000,000
+ $600,000
$9,600,000
Pending Sale Price
Chimney Hill Fund Balance ; FY13 end
Sales & Ad Valorem Tax Revenue; (1.5 years)
Equivalent to original Purchase Price

6. 
Incentives:

PMRG’s Obligations:

◦ Sold to PMRG through an “independent foundation” (RVP)
◦ Development Fast Tracking & Inspection
◦ Waiver of initial application costs ($3,227.50)
◦
◦
◦
◦
$14.67 million annual sales / $220,000 sales tax revenue
$40 million ad valorem value / $170,000 property tax revenue
200 employment positions with quarterly reporting
Phase 1: September 30, 2015
Phase 2: March 31, 2017
City’s Clawbacks:
◦ PMRG pays tax liability difference if less than obligation

7. 
December 12, 2013

December 2013 through May 2014

June 2014

September 2015

March 2017
◦ Council action on Purchase & Sale Agreement
◦ Council action on Economic Development Agreement
◦ 150 Day Inspection Period
◦ Closing
◦ Phase I Complete
◦ Phase II Complete