title
LOT 10 - MUTUAL RESCISSIONS OF AGREEMENTS BETWEEN THE CITY AND GG DEVELOPMENT ASSOCIATES AND KENNETH AND LINDA McGURN; APPRAISAL; AND OPTION TO PURCHASE BETWEEN THE CITY AND THE CRA (B)
recommendation
The City Commission (1) rescind the License Agreement for Use of the Parking Garage between the City and GG Development Associates dated May 15, 2007; (2) rescind the Second Amendment to License Agreement for Use of Parking Garage dated May 15, 2007 between the City and Kenneth and Linda McGurn; (3) rescind the Option Contract for the Purchase and Sale of Land dated June 17, 2005 (as subsequently assigned to GG Development Associates on September 13, 2006), the First Amendment dated May 17, 2007 and Second Amendment dated June 16, 2008; (4) authorize the City Manager to execute any and all documents related to such rescissions, subject to review by the City Attorney as to form and legality; and (5) direct the City Manager, or designee, to obtain an appraisal of Lot 10 and to negotiate a new option to purchase with the CRA.
explanation
As has been previously discussed, by both the City Commission and the CRA, the Gainesville Greens project proposed to be constructed on City Lot 10 has been adversely affected by the change in market conditions since the project was initially proposed and approved three years ago. When the Option to purchase between the City and the Developer was extended in June 2008, there were concerns that the current real estate and financial market conditions could prevent the project from being built. On August 29, 2008, the Developer notified the City that it was unable to move forward with the development.
On September 15, 2008, the CRA discussed the scope for a new RFP for Lot 10, approved a Mutual Rescission of its Development and Disposition Agreement with the Developer and authorized the CRA to enter into a new Option to Purchase Lot 10 with the City. Rescission of the agreements between the Developer and the City ...
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