HomeMy WebLinkAboutItem 02- Letter of Intent and ExtensionAGENDA ITEM SUMMARY Meeting Date: 5/28/2024
Meeting Type: Regular Meeting
Department: CMO
Staff Contact: Allie Camp
S P R I N G F I E L D ECONOMIC Staff Phone No: 541-726-3688
DEVELOPMENT AGENCY Estimated Time: 5 minutes
ITEM TITLE: DOWNTOWN LETTER OF INTENT NEXT STEPS
ACTION
REQUESTED:
Direct the City Manager to proceed/not proceed with acquisition of 702 A Street,
751 B Street.
ISSUE
STATEMENT:
The Springfield Economic Development Agency and The Motors LLC have
entered a Letter of Intent for properties at 702 A Street and 751 B Street (ATT 1),
and SEDA will need to determine whether to proceed with an acquisition.
ATTACHMENTS: 1. Letter of Intent with extension.
DISCUSSION/
FINANCIAL
IMPACT:
On February 20, 2024 the Springfield Economic Development Agency (SEDA) and
The Motors LLC entered a Letter of Intent (LOI) defining a 90-day due diligence
time frame for potential acquisition of the Buick site, 702 A Street, and adjacent
parking lot, 751 B Street. The LOI defined items for the Owner and SEDA, all of
which have been completed. The Owner delivered a letter exercising one of the two
90-day renewals defined in the LOI to allow for time to determine the Board’s next
steps for the property.
Acquisition of this property would provide more developable area available to
support future projects at the Blue McKenzie site, 740 A Street. This additional
land has the capability to improve a development project’s viability by adding area
for exploration of housing type and construction considerations, parking, and the
incorporation of the adjacent existing commercial storefront, the former Buick
dealership. Land banking multiple properties for a potential future development
allows for more certainty in terms of access and control of the land. It also allows
for more flexibility for how that land is programmed to both meet community needs
and be economically viable.
Terms of potential acquisition will be discussed in the meeting.
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