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CASSELQERRY CITY COMMISSION Minutes of June 23, 2014 — Regular Meeting Page 7 of 14 Mr. Newlon advised that the bowling alley had recently closed its doors and the property and building had become available for purchase. He stated that the parcel included approximately 2.7 acres, approximately 170 parking spaces, and a building shell amounting to approximately 32,000 enclosed square feet. He further advised that the asking price for the property was $900,000 and the City's consultants and staff had inspected the property and the building and felt the parcel would be a very good value for the City to consider purchasing as a possible future site for a public safety complex. He explained that he and staff were requesting that the Commission consider a contract offer of $850,000 for the parcel, with 45 days to conduct due diligence as to the feasibility of the purchase, and to authorize $25,000 in order to conduct appraisals, a survey, and a building and mechanical inspection. He added that he would also request an architectural assessment of the building to determine if it would be suitable for retrofitting, or would ultimately need to be demolished. He stated that after the 45 -day due diligence evaluation period, staff would bring the information back to the Commission for consideration as to whether to proceed with the purchase. He added that everything would be contingent on the sellers accepting any offer by the City, and if all the evaluations revealed that it would be feasible to make the purchase and if the Commission desired to do so, he anticipated a closing could take place within approximately 60 days. Discussion: Commissioner Aramendia advised he had toured the property with the City Manager and felt acquisition of the property would be very advantageous for the City and would provide a strategic location for the City to locate a public safety complex, freeing up the current Police Department building parcel for commercial development which would add value to the City's tax roll. He stated he felt this purchase would be a good move towards the City's future visioning for the area. Mr. Newlon clarified that this parcel was strategically located along the State Road 436 corridor and would be an asset as it currently existed, and the City was not currently considering any annexations in the area. Budget Impact: Budget Amendment #14-040 provides funding sufficient ($35,000) to pay due diligence expenses ($25,000) and for the earnest money deposit ($10,000). No funds will be expended unless the seller executes the contract. A budget amendment will be brought forward to cover the purchase price and associated closing costs at the time the City Commission hears the due diligence reports and is asked to authorize the City to go to closing. This is expected to occur August 11, 2014. Recommendation: The City Manager recommended approval of Resolution 14-2624 and associated Budget Amendment #14-040. Audience Participation: The following individuals came forward to address Resolution 14-2624: Assistant City Attorney Debra Babb-Nutcher arrived in the Chambers at 4:32 p.m. Mayor Glancy reminded Mr. Jaynes Fraleigh to follow parliamentary rules and procedures and to use a respectable tone during his comments. Mr. Fraleigh commented that he hoped the Mayor would issue the same warning to everyone who spoke. Mr. James Fraleigh, 23 Teresa Court, spoke in opposition to Resolution 14-2624, stating he did not feel the Commission had been fiscally responsible in its purchase and sale of the City Center property for a loss of over $4 million, and he felt the property being proposed for