2021-299-Order No. 2021-034 Recorded 7/12/2021Recorded in Deschutes County CJ2021-299
REVIEWED Nancy Blankenship, County Clerk
MAIL Commissioners' Journal 07/12/2021 9:40:26 AM
LEGAL COUNSEL lI � (I'll I I'll ll I I Il Il l Il I I I l lIl
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2021-299
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Designating Kristie Bollinger, the
Deschutes County Property Manager, as the * ORDER NO. 2021-034
Deschutes County Representative for the Purpose
of Signing Documentation for the Purchase and
Acceptance of Property Located at 236 NW
Kingwood Avenue, Redmond, Oregon 97756
WHEREAS, the Board of County Commissioners of Deschutes County has authorized the purchase of
property located at 236 NW Kingwood Avenue, Redmond, Oregon, 97756 from Malwood, LLC (Seller); and
WHEREAS, on May 12, 2021, Deschutes County entered into a Purchase and Sale Agreement to
purchase the property in the amount of Two Million Four Hundred Fifty Thousand ($2,450,000) Dollars, subject
to a due diligence period scheduled to expire July 12, 2021; and
WHEREAS, the Seller has the option to extend the closing by two forty-five (45) day periods for the
purpose of completing a 1031 Exchange; and
WHEREAS, the Seller has opted to exercise the first option to extend by forty-five (45) days while
reserving the right to extend by an additional forty-five (45) day period if necessary for the 1031 Exchange; and
WHEREAS, currently the transaction closing is projected to occur approximately mid -September
2021, unless the Seller exercises the second option to extend or shortens the extension period, and at the time of
closing, the documents necessary to conclude the transaction need to be signed on behalf of Deschutes County
as the purchaser; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY
ORDERS as follows:
Section 1. Kristie Bollinger, the Deschutes County Property Manager, is designated as the Deschutes
County representative for the purpose of signing the necessary documents for the purchase and acceptance of
property located at 236 NW Kingwood Avenue, Redmond, Oregon, 97756.
SIGNATURES ON FOLLOWING PAGE
PAGE 1 OF 2- ORDER NO.2021-034
Dated this of , 2021
ATT
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Recording Se6eetary
PAGE 2 OF 2- ORDER No. 2021-034
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ANTHONY DEBONE, Chair
PH L CHANG, Vice air
7 ) ik
PAT I ADAIR, Commissioner
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BOARD OF
COMMISSIONERS
AGENDA REQUEST & STAFF REPORT
MEETING DATE: Wednesday, July 7, 2021
SUBJECT: Consideration of Board Signature of Order No. 2021-034, authorizing the
Property Manager to execute the documents associated with the purchase of
property located at 236 NW Kingwood Avenue, in Redmond.
RECOMMENDED MOTION:
Move approval of signature of Order No. 2021-034 authorizing the Property Manager to execute
the documents associated with the purchase of property located at 236 NW Kingwood Avenue, in
Redmond.
BACKGROUND AND POLICY IMPLICATIONS:
On March 31, 2021, your Board authorized the County's Property Manager to negotiate the
purchase price for property located at 236 NW Kingwood, Redmond and is known as Map and
Tax Lot 151309A000805 (see vicinity map). At that time, the property was not on the market for
sale. The Board authorized an initial offer of $2,000,000 and after a series of negotiations, the
ownership agreed to a sales price of $2,450,000 and your Board subsequently authorized the
amount. Thereafter, your Board also authorized the Property Manager to execute a Purchase
and Sale Agreement (PSA) with the ownership, Malwood, LLC (Malwood) to memorialize the
terms and conditions of the purchase/sale. The PSA was executed on May 12, 2021, which is also
the start of the due diligence period and scheduled to expire July 12, 2021.
The 9,461 square foot building was constructed in 2003 and is situated on 0.89-acres with 49
parking spaces. There is currently three tenants occupying space in the building and the County
will assume the leases at the time the transaction closes.
1) MWD Management, LLC (Bend Dermatology) occupies 5,445 square feet at
$9,499.01/month (effective August 2021) with a lease term scheduled to expire July 31,
2022
2) Dr. Frank Cobarubbia (Northwest Foot Care) occupies 325 square at $550/month on a
month -to -month basis
3) Adaugeo Health Care (Interpath Lab) occupies Z400 square feet and the tenant is
scheduled to vacate in mid July
This strategic North County property acquisition will allow the County to expand services to
further serve individuals and families in the surrounding communities. It is anticipated that the
tenant improvement project that will include space programming, design and construction
services will be completed in approximately Fall 2022 with anticipated County occupancy late
2022/early 2023.
BUDGET IMPACTS:
Property purchase price of .$2,450,000. Deschutes County will receive revenue from the existing
leases with Dr. Frank Cobarubbia and MWD Management, LLC until a later date to be
determined.
ATTENDANCE:
Kristie Bollinger, Property Manager