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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 jCES �� 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 S4,)40L 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 GZ VLJ\..I I V 1 LJ %.%JV I V I 1 V1 %.A I V 1 1 I' V-%r < Maptax #151309A000805 Doc # 2017-3444 - 0.86 Acres er: C\TestPrged:s\Prop Management\UdrityMaps\ Created: 6/10/2021 �(levT ES CO& 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