SUBSTITUTE                                                                                              ADOPTED - SEPTEMBER 26, 2006

Agenda Item No. 22

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION ACCEPTING AN OFFER TO PURCHASE COUNTY-OWNED REAL PROPERTY LOCATED AT 2200 S. WASHINGTON AVENUE, LANSING, MI 48910

RESOLUTION #06-239

WHEREAS, in 1985, Ingham Medical Center Board of Trustees, in trust for the County of Ingham, purchased property located at 2200 S. Washington Ave., Lansing, MI 48910 from Federal Drop Forge Company for $520,000 ($265,000 paid in cash and $255,000 forgiven by Federal Drop Forge Company as a charitable donation); and

WHEREAS, over the years the County has leased the 7.64 acre property numerous times primarily for parking and storage purposes; and

WHEREAS, the Board of Commissioners authorized the Controller by Resolution #04-276 to take the necessary steps to sell the property, where any sale is contingent upon approval by the Board of Commissioners; and

WHEREAS, the County entered into a contract with CB Richard Ellis/Martin (CBRE) in 2005 to provide real estate brokering services, where CBRE’s commission rate for selling said property is 6% of the gross selling price; and

WHEREAS, in a 1992 Reorganization Agreement between Ingham Medical Corporation, Lansing General Hospital, Osteopathic, and the County of Ingham, Lansing General Hospital (now Ingham Regional Medical Center – (IRMC)) was granted the first right of refusal for this property; and

WHEREAS, in an August 8, 2006 letter to the County, Ms. Paula M. Reichle, Senior Vice President and Chief Financial Officer of IRMC, stated that IRMC is waiving its first right of refusal for the property; and

WHEREAS, an offer to purchase the property was received on July 27, 2006 (amended August 30, 2006 and September 26, 2006) from James and Antonia Kraus, (Purchaser), for an entity to be formed; and

WHEREAS, the offer is for $202,500 ($2,500 earnest money), with 90 days due diligence with an option for an additional 30 days, if needed; and

WHEREAS, the offer is contingent upon Purchaser obtaining a 20-year mortgage in the amount of 85% of the purchase price bearing an interest rate of not more than 7.25% per annum.  Purchaser will apply for the mortgage within (10) days of County’s acceptance; and

WHEREAS, a market survey of comparable land sales of other vacant industrial lots of similar size, location, and zoning performed by CBRE indicates this is a fair market offer.

THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners authorize the acceptance of the $202,500 offer from James and Antonia Kraus to purchase the County-owned real property located at 2200 S. Washington Ave., Lansing, MI 48910, described as:

SUBSTITUTE                                                                                              ADOPTED - SEPTEMBER 26, 2006

Agenda Item No. 22

RESOLUTION #06-239

             Commencing on centerline of S. Washington Ave. 1,046 feet Southwesterly of intersection S.   Washington Ave. & W. Mt. Hope Ave., thence Southwesterly along centerline S. Washington Ave.

            337.5 feet thence West to Southeasterly R/W line NYC RR, thence Northeasterly along said R/W line to 

            point due West of beginning, thence East to beginning, excluding lands used for street purposes; Section

            28, T4N, R2W, 7.64 Acres (pl), City of Lansing, Ingham County, Michigan.

BE IT FURTHER RESOLVED, that the County shall provide at its expense, title insurance with standard exceptions in the amount of the purchase price, and shall provide any land surveys it has; any other surveys required by the Purchaser shall be obtained at the Purchaser’s expense. 

BE IT FURTHER RESOLVED, that closing shall take place no later than January 19, 2007.

BE IT FURTHER RESOLVED, that Corporate Counsel shall approve as to form the July 27, 2006 Agreement to Sell Property and any amendments prepared by CB Richard Ellis/Martin.

BE IT FURTHER RESOLVED, that the Controller is authorized to add all revenue from the sale of this property to the General Fund unreserved fund balance.

BE IT FURTHER RESOLVED, that the Ingham County Board Chairperson and County Clerk are authorized to sign any contract documents consistent with this resolution after approval as to form by the County Attorney. 

COUNTY SERVICES:  Yeas:  Schor, De Leon, Holman, Copedge, Severino, Vickers

Nays:  None                        Absent:  None          Approved 9/19/06

FINANCE:  Yeas:  Thomas, Hertel, Grebner, Dedden, Dougan

Nays:  None                             Absent:  Weatherwax-Grant               Approved 9/20/06