HomeMy WebLinkAbout6C(1) 348 Columbia~.~.~%~
Staff Report
Disposition of Property at 348 Columbia Street
?/?7/09
In the first year of this millennium, the Redevelopment Commission successfully worked
with Press Ganey (the operating entity) to retain and grow the company at its current
location. As a part of the Redevelopment Agreement entered into by Press Ganey and the
Redevelopment Commission, property at 348 Columbia was to be purchased. Ganey
Press Real Estate purchased the building occupying the site and the Redevelopment
Connnission acquired the land on which the building was located. Redevelopment, after
completing the statutory disposition process, entered into a long term Ground Lease (49
years with two 25 year renewal options) with Ganey Press Real Estate for the use of the
land.
The Redevelopment Agreement and Ground Lease both anticipated a future sale of the
property and established a framework for that sale to take place. The Redevelopment
Commission has two options:
1. The Ground Lease can be assigned to the new owner of the property; or
2. The Redevelopment Commission can include its property in the sale and receive
payment fi•om the sale proceeds based on a formula established in the Ground
Lease. The first $1,150,000, after deducting expenses of the sale, goes to Ganey
Press Real Estate. The next $400,000 goes to Redevelopment, and any remaining
proceeds are split equally between Redevelopment and Ganey Press Real Estate.
Ganey Press Real Estate has sent the attached letter indicating a sale may be imminent,
and would include the property at 348 Columbia, along with 3 other properties. Total
sale proceeds, less the costs of the sale, would be allocated to each property based on
square footage of building improvements.
Staff recommends favorable consideration by the Redevelopment Commission for the
sale of 348 Columbia and the allocation of sale proceeds as proposed..
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