R2010-228 AUTHORIZING EXCHANGE OF REAL ESTATE

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� � ` ` DEVELOPMENT SERVICES MEMORANDUM No. 10-113 December 1, 2010 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Greg C. Crowe, Assistant City Manager SUBJECT: Real Estate Transfer Agreement for Parking Lot North of Striglos Building SUMMARY RECOMMENDATION: Staff recommends approval of the attached Real Estate Transfer Agreement with Nick G. Striglos to facilitate the construction of a new parking lot north of the Striglos Building at 150 E. William St. BACKGROUND: The property located at 150 East William Street is currently occupied by Striglos Companies, Inc, and Haines and Essick. The City of Decatur and Nick Striglos own adjacent parcels of property approximately 43 feet wide to the North of the Striglos Building. The City currently owns approximately the west 91 feet adjacent to the Striglos Building and Nick Striglos owns approximately the east 61 feet adjacent to the building. The Agreement would result in Striglos owning a parcel approximately 18 foot wide adjacent to the entire 152 foot north fa�ade of the building. The City would own an approximately 25 foot wide parcel adjacent and north of the new Striglos parcel. The attached aerial highlights the existing parcel configuration. The real estate transfer will allow the City and Striglos to construct a new parking lot in the 300 Block of North Main Street as shown on Exhibit A of the Agreement. The angled parking adjacent to the building will be owned by Striglos and the angled parking on the City's property will be leased to Striglos for twenty years with a renewal option of another twenty years. The estimated cost of construction for the entire parking lot is estimated to be $122,350.00. Striglos agrees to pay City $17,190.00 for its share of constructing the parking lot. Striglos has already completed the filling of the sub-surface vault under the proposed parking lot with sand. Any additional costs regarding the sub-surface vault will be the responsibility of Striglos. Across the 16 foot drive lane created by the new parking lot, City shall grant Striglos a permanent easement for ingress/egress for Striglos' parking needs. In the Agreement, the City also agrees to execute a parking lease to Striglos for the twelve angled parking spaces on City property at no charge for the next twenty years with a renewal option of another twenty years. Striglos is responsible for the annual maintenance, including snow removal, snow hauling, lot sweeping and renewal painting of pavement markings, of all of the spaces except for paving repairs and curbing which shall be the responsibility of the City. The lease agreement gives Striglos exclusive use of the parking spaces from 9:00 a.m. to 4:30 p.m. Monday through Friday. POTENTIAL OBJECTION: Staff is not aware of objections.