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HomeMy WebLinkAboutDoc 330 - Amend Sale Agrmt - BiogreenDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of June 4,2014 Please see directions for completing this document on the next page. DATE: May 30, 2013 FROM: James Lewis Property and Facilities 541-385-1414 TITLE OF AGENDA ITEM: Consideration of Signature of Document 2014-330, an Addendum to a Real Estate Sale Agreement (DC 2009-312) between Deschutes County (Seller) and Biogreen Sustainable Energy Co. (Buyer) PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: On June 29, 2009 the Deschutes County Board of Commissioners (Board) signed an option agreement (DC 2009-312) giving Biogreen Sustainable Energy Co. (Biogreen) the exclusive option to purchase land in the La Pine Industrial Site to construct and operate a biomass power facility. Pursuant to that agreement, Biogreen would purchase the 19.5 acre site for a purchase price of $1,200,000 within the timeframe established therein. Since the original agreement, the Board has granted three separate extension requests to the original Option Agreement (DC 2011-330, 2012­ 261 and 2013-183), with the current option extension expiring June 1,2014. In order to allow a short period oftime for Biogreen to address specific development related issues with the City of La Pine, Biogreen is requesting a short term extension of two months, to address these issues, as well as providing further explanation of the progress and milestones that can be expected for the biomass project as it moves forward. The option agreement will be further discussed no later than July 23,2014, in order to consider a possible longer-term extension past the August 1,2014, date. Factors that will be weighed in considering the possible extension include Biogreen's demonstration of progress, timeline and milestones in moving the biomass project forward, and an additional earnest money payment to Deschutes County to secure the option for purchase. FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: Staff recommends Board authorization and signature of Document 2014-330. ATTENDANCE: James Lewis DISTRIBUTION OF DOCUMENTS: Original to James Lewis Property & Facilities Department Susan C. Ross, Director 1 4 NW Kearney Street, Bend, OR P.O. Bo x 6005, Bend, OR 9770B-6005 (541) 388-6594· Fax : (541) 317-3168May 30,2014 www .co .deschutes .or.us Mr . Rob Broberg Biogreen Sustainable Energy Co . 445 Port Ave., Suite A St. Helens, OR 97051 RE: Biogreen Option Agreement, La Pine Industrial Site On June 29, 2009 the Deschutes County Board of Commissioners (Board) signed an option agreement (DC 2009-312) giving Biogreen Sustainable Energy Co . (Biogreen) the exclusive option to purchase land in the La Pine Industrial Site to construct and operate a biomass power facility. Pursuant to that agreement, Biogreen would purchase the 19 .5 acre site for a purchase price of $1 ,200 ,000 within the timeframe established therein . Since the original agreement , the Board has granted three separate extension requests to the original Option Agreement, with the current option extension expiring June 1,2014. In order to allow a short period of time for Biogreen to address specific development related issues with the City of La Pine , Biogreen now requests a short term extension of two months , to address these issues , as well as providing further explanation of the progress and milestones that can be expected for the biomass project as it moves forward. Deschutes County hereby grants a short-term, two-month extension of the option agreement to August 1, 2014. The option agreement will be further discussed no later than July 23, 2014, in order to consider a possible longer term extension past the August 1, 2014, date . Factors that will be weighed in considering the poss ible extension include Biogreen 's demonstration of progress , timeline and milestones in moving the biomass project forward , and an additional earnest money payment to Deschutes County to secure the option for purchase. Sincerely , DESCHUTES COUNTY BOARD OF COMMISSIONERS Tammy Baney, Chair Anthony DeBone, Vice-Chair Alan Unger, Commissioner Document No. 2014-330 Quality Ser v ices Perform ed with Prid e