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HomeMy WebLinkAbout10238RESOLUTION NO. 10238 A RESOLUTION PROVIDING INCENTIVES FOR THE PARTICIPATION OF REAL ESTATE BROKERS AND SALESPERSONS IN THE DEVELOPMENT AND DISPOSITION OF HISTORIC ARKANSAS RIVERWALK PROJECT LOTS BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 In order to provide incentives for the participation of Colorado licensed real estate brokers and salespersons ( "Real Estate Professional') in the development and disposition of Historic Arkansas Riverwalk Project ( "HARP ") lots, the Historic Arkansas Riverwalk of Pueblo Authority ( "HARP Authority ") and the City of Pueblo offer the following opportunity to Real Estate Professionals: 1. Finder's Fee. HARP Authority will pay a 3% "finder's fee" for written referral by a Real Estate Professional of a qualified and interested developer that results in the purchase of a HARP lot by the referred developer pursuant to a development and disposition agreement. 2. Letter of Intent and Earnest Money. HARP Authority will pay a 7% commission on a written proposal submitted by a Real Estate Professional from a qualified and interested developer accompanied by an acceptable earnest money deposit that results in the purchase of a HARP lot by such developer pursuant to a development and disposition agreement. 3. Payment of Fees and Commissions. The 3% fee and 7% commission are based on the final purchase price of a HARP lot as negotiated between the City of Pueblo and the developer and will be paid out of the purchase price at the time the HARP lot is purchased by the developer pursuant to a development and disposition agreement. 4. Development and Disposition Agreement. The HARP lots are available for sale only in conjunction with and as part of a HARP lot development. The development must meet and comply with the HARP Authority /City of Pueblo development plans for HARP and the HARP lot and be approved by both HARP Authority and the City of Pueblo. The details, covenants and conditions of the development and purchase of a HARP lot will be set forth in a development and disposition agreement between the City of Pueblo and a developer. 5. Dispute. Any dispute with respect to the payment of such fee or commission shall be resolved by the City Manager after consultation with the HARP Authority's Executive Director. The decision of the City Manager shall be final and binding on all parties. SECTION 2 This Resolution shall become effective upon final approval and passage. INTRODUCED October 12, 2004 BY Robert D. Schilling Councilperson D 0 0 ED Background Paper for Proposed RESOLUTION 4Z,0. A I dz 38 AGENDA ITEM # 4 DATE: October 12, 2004 DEPARTMENT: Law Department TITLE A RESOLUTION PROVIDING INCENTIVES FOR THE PARTICIPATION OF REAL ESTATE BROKERS AND SALESPERSONS IN THE DEVELOPMENTAND DISPOSITION OF HISTORIC ARKANSAS RIVERWALK PROJECT LOTS ISSUE Should City Council offer incentives to real estate brokers and salespersons to participate in the development and disposition of HARP lots. RECOMMENDATION None BACKGROUND Councilperson Schilling suggested that involving real estate brokers or salespersons in the development and disposition of HARP lots may assist in the sale and development of HARP lots. HARP's executive director and City Administration drafted the incentive program for City Council's consideration. FINANCIAL IMPACT If a real estate broker's or salesperson's participation results in the sale of a HARP lot, he /she would be paid either a 7% commission or 3% finder's fee based on the purchase price of a HARP lot at the time of sale.