Title
A Resolution authorizing acquisition of approximately 562 acres and recognizing a partial donation
Presenter:
Troy Stover, Business Park Development Director, Colorado Springs Airport
Body
Summary:
This resolution involves a request to City Council to authorize the Airport enterprise to purchase approximately 562 acres (the "Property") to hold for development as a part of Peak Innovation Park. The Property is adjacent to the current east boundary of the Airport lands and extends to Marksheffel Road. The purchase is structured in four phases, with an initial purchase of approximately 287 acres in 2023, followed by options to purchase the remaining acreage with closings in 2025, 2026, and 2027. The total purchase price under the contract is approximately $38,133,774.10
Background:
On May 31, 2023, the Airport entered into a Purchase and Sale Agreement with Phased Acquisitions (the "PSA") for the Property. The PSA divides the Property into six (6) parcels and stretches the Property purchase out over five (5) years in four (4) phases. The initial phase includes three (3) individual parcels comprising approximately 287 acres. The remaining three (3) parcels may be optioned in three (3) additional purchase phases.
The Airport obtained an appraisal of the Property, which determined the fair market value of each of six (6) parcels, comprising the 562 acres. The fair market value of the parcels ranged from $1.25 per square foot to $2.10 per square foot. The average price per square foot is $1.4656, which is the base purchase price negotiated between the parties. The initial phase purchase price is $1.4656. Subsequent phases have a price escalation of four percent (4%) per annum through September 2025, with a price escalation of seven (7%) per annum thereafter. The overall economics are as follows:
October 2023 - Phase 1, Parcels 1-3, 287 acres at $18,355,498.30
September 2025 - Phase 2, Parcel 4, 109 acr...
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