Summary:
In accordance with Article I, Section 3 of the Peoria City Charter, the City Council must approve the acquisition of property. The property, located at 8795 North 83rd Avenue, borders a western portion of Pioneer Park. The current use is for a HVAC service and supply business as well as a pest control business. There are no other properties that border this property, with the exception of Pioneer Park.
The current owners have been marketing the property for sale for several months, with prospects varying from a 3-story self-storage, to a mechanic repair shop, to a used car lot. It is currently zoned as Industrial.
The property has been listed for $1.5M and has had at least one buyer under contract within the last 60 days. The latest buyer sought to build a 3-story self-storage facility and underwent several site plan reviews. Among the issues resulting in site-plan review was fire medical access, turning radius, etc. Ultimately the buyer chose to cancel the contract and the property very recently came back on the market.
In accordance with Council Policy CP3-1, an appraisal was ordered. The result of the appraisal was $1.1M. The City can offer a maximum of 10% above appraisal, which is $1.21M. Staff successfully negotiated the contract amount of $1.21M, which is below listing of $1.5M.
Exhibit B of the agreement is a post-closing possession agreement, allowing the Seller to continue to occupy the premises for a period of up to 270 days post-closing. This agreement requires the Seller to assume all liability of the property during tenancy, requires a fee of $600 +/- per month, and a $25,000 holdback of the sale proceeds until the end of the post possession period. The entire fee will be paid up front at closing.
The Seller has executed and notarized all documents.