As I am sure you will recall at your last City Council meeting, I indicated that the above-mentioned matter would be included on the agenda in conjunction with your meeting schedule for May 20, 2025. Since that time, the City Attorney, after having had some discussion with me, has responded to several contract revisions that were proposed by the School Board’s legal counsel. A summary sheet which lists the School Board contract revisions is attached as well as a redline version of the Purchase and Sale Agreement which contains the proposed response as provided by the City Attorney. The following are the pertinent revisions along with the proposed responses:

1.      The payment period associated with the purchase price has been reduced from 3 years to 2 years. -The City accepted the change.

2.      An interest payment along with a calculation method was proposed to be charged on the amount of the purchase price remaining unpaid after 1 year until paid. - The City agreed to pay an interest payment and proposed a rate of 3%.

3.      The School Board must approve all improvements to the property until the purchase price is paid in full.  The City accepted the change.

4.      The School Board will not pay the City for any improvements to the property made by the City if the property is returned to the School Board for non-payment. - The City accepted the change.

5.      The covenant to restrict multi-family residential use of the property defines multi-family as more than one-unit per building in lieu of as defined in the City’s Land Development Code. - The City accepted the change.

6.      The School Board added a restriction against any change in the zoning of the property, or its being designated historic, until the purchase price has been paid. – The City accepted the change.

7.      If the property is sold within ten years by the City, a percentage of the net profits from the sale of the property must be paid to the School Board within a reduced value schedule. – The City accepted the change.

8.      Until the purchase price is paid, the School Board will remain a named insured on a $1 million dollar liability policy.  The City accepted the change.