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TO: Mayor Robert J. O’Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: March 9, 2017
SUBJECT:
To approve an ordinance authorizing the execution of a Commercial Real Estate Sales Contract for the sale of City-owned Property Located at 2500 North River Road, North Aurora, Illinois, commonly known as the Fox Valley Golf Course, to DRH Cambridge Homes for a purchase price of five million three hundred thousand dollars ($5,300,000.00).
PURPOSE:
The City of Aurora has owned the 106-acre Fox Valley Golf Course since the mid 1970's and has been closed for the past two seasons. It has been marketed to interested developers for the past few years.
BACKGROUND:
On January 25th 2017, the City of Aurora issued a Public Notice Accepting Offers for Sale of Properties (Attachment A). One of the properties issued was the Fox Valley Golf Course, located at 2500 North River Road in North Aurora (PIN’s #12-34-100-009 and #12-34-100-010). Bids on this property were due no later than February 15th 2017. The City of Aurora received two letters of intent for the property.
Invest Aurora has reviewed the letters of intent outlining each bid, and recommends moving forward with a Purchase and Sale agreement between the City of Aurora and D R Horton. The sale will be made for $5,300,000.00.
PROPOSALS:
D R Horton: Revco Ventures Inc.:
Units: 400 Units: 450
Housing Type: Senior Targeted Housing Type: Market
Sale Price: $5,300,000 Sale Price: $5,300,000
Due Diligence Period: 120 Days Due Diligence Period: 90 Days
Closing Date: 30 Days* Closing Date: 21 Days**
Initial Earnest Money: $25,000 Initial Earnest Money: $10,000
Additional Earnest Money: $175,000 Additional Earnest Money: $40,000
*Closing date for D R Horton’s proposal is contingent upon delivery of Notice of Governmental Approval.
**Closing date for Revco’s proposal is contingent upon expiration of the Contingency Period.
DISCUSSION:
D R Horton will be granted a Feasibility Period of 120 days to review all documents held by the City of Aurora. In the event that D R Horton is satisfied with all documents, the company must deposit non-refundable earnest money in the amount of $25,000. D R Horton will then be granted a Governmental Contingency Period of 180 to pursue and obtain entitlements from all governmental bodies. D R Horton has the option to extend the Approval Period (with at least 3 days written notice) for two additional periods of 60 days each. Once D R Horton has obtained zoning and preliminary plat of subdivision, the company will have no more than 10 days to deposit an additional $175,000 in earnest money. The second deposit will remain non-refundable until the City of Aurora receives the required Notice of Governmental Approval. All funds will be paid in cash and held in a joint escrow account. The fees for this account will be shared between parties.
Upon receipt of Notice of Governmental Approval, D R Horton and the City of Aurora will agree on a mutually convenient time and location for closing date within 30 days. Funds held in escrow will be credited towards the purchase price at time of closing. Total timeline will be between 340-460 days (11-15 months).
IMPACT STATEMENT:
This sale of property will have no negative impacts.
RECOMMENDATIONS:
It is recommended that the City of Aurora enter into a Commercial Real Estate Sales Contract with D R Horton for the amount of $5,300,000.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Approving the Commercial Real Estate Sales Contract Between the City of Aurora and DRH Cambridge Homes, Inc. for the Sale of City-Owned Property Located at 2500 North River Road, North Aurora, Illinois, Commonly Known as The Fox Valley Golf Course.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora is interested in selling and DRH Cambridge Homes, Inc., a California corporation, is interested in purchasing real estate property known as the Fox Valley Golf Course, 2500 North River Road, North Aurora, Illinois, with Property Index Numbers of 12-34-100-009 and 12-34-100-010, at a price of Five Million Three Hundred Thousand and 00/100 Dollars ($5,300,000.00), and also in accordance with the Commercial Real Estate Sales Contract attached hereto and made a part thereof as Exhibit A; and
WHEREAS, it is in the best interest of the City of Aurora and its residents that the sale of the Fox Valley Golf Course to DRH Cambridge Homes be approved.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: That the Commercial Real Estate Sales Contract for the sale of the property at 2500 North River Road, North Aurora, Illinois commonly known as the Fox Valley Golf Course as attached hereto as Exhibit A is hereby approved. Additionally, Alayne Weingartz, Corporation Counsel, or her designee are hereby authorized to act on the City's behalf to complete the sale of this property.