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Home My WebLink AboutDoc 165 - Option Agrmt - La Pine Industrial Site0 -TEs c ❑ Deschutes 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 March 3, 2010 Please see directions for completing this document on the next page. DATE: February 23, 2010 FROM: Teresa Rozic Property & Facilities 385-1414 TITLE OF AGENDA ITEM: Consideration of Board Signature of Document 2010-165, an Amendment to Option Agreement. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: On June 29, 2009, the Board of County Commissioners signed an Option Agreement giving Biogreen Sustainable Energy Co. ("Biogreen") the exclusive option to purchase ten acres of unimproved land in the La Pine Industrial Site. Biogreen, based in St. Helens, Oregon, wishes to purchase acreage to build and operate a biomass power facility. Biogreen recently refined the plant design and finds that they need additional acreage to store fuel. Their engineer produced a drawing, the attached "Proposed Project Site Area", depicting a 19.5 -acre site as the total acreage requirement for this project. In addition to asking for additional acreage for the project, Biogreen asked Deschutes County to adjust the sales price downward to approximately $1.41 per square foot. Staff believes that this is a reasonable price for unimproved land in southern Deschutes County considering current market conditions. The power facility will generate 19.8 megawatts of electricity and create approximately 20 - 25 direct jobs and up to 90 indirect jobs in trucking, forestry, etc. FISCAL IMPLICATIONS: Biogreen has already made an option payment in the amount of $10,000 which, according to the Option Agreemnt, belongs to the Owner whether or not the option is exercised (the option expires June 29, 2011). The total purchase price of the 19.5 acres is $1,200,000. RECOMMENDATION & ACTION REQUESTED: Staff recommends signature of Document 2010-165. ATTENDANCE: Teresa Rozic DISTRIBUTION OF DOCUMENTS: Original to Teresa Rozic PORTION OF TRACT E LA PINE INDUSTRIAL SITE LOCATED IN: NW 1/4 OF SECTION 14, T22S, R10E, W.M., DESCHUTES COUNTY, OREGON REED ROAD 30' REMAINDER PORTION TRACT E n• 01 :VI �i. PROPOSED BOUNDARY FOSS ROAD REGISTERED PR❑FESSI❑NAL LAND SURVEYOR(2,c•‘<k-0/1(-7 • • • • 11V12 300.95 14 N8753'15"W 19.50 ACRE PORTION OF TRACT E, LA PINE INDUSTRIAL SITE • 200' ( I0O' N89'40'14"W 586.84_ OREGON JULY 19, 1994 DAVID R. WILLIAMS 2686 RENEWAL DATE' 06/30/10 -V/'3/ 2 1" = 300' • • ( 091205/bio -site H ,INAOG I•GIN11G 1,1N•Ui HICKMAN. W+LLIAMS t ASSOCIATES. INC 1101 NW *AU V11R. IW11100 1111O.OIIG01110101 'KOII 111,1/I.Iifl 1.I !11 1115411 LAPINE BIOMASS FUEL PROCESSING FACILITY PROPOSED PROJECT SITE AREA SH.ET 1,/1 SCALE: 1 " = 300' 'DRAWN BY: DRW DATE: 12/31/09 DESCHUTES COUNTY DOCUMENT SUMMARY (NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form electronically to the Board Secretary.) Date: Please complete all sections above the Official Review line. February 23, 2010 Contractor/Supplier/Consultant Name: Contractor Contact: Rob Broberg Department: Property & Facilities Biogreen Sustainable Energy Co. Contractor Phone #: Type of Document: Amendment To Option Agreement 360.936.5408 Goods and/or Services: Amend Option Agreement to add acreage and adjust sales price. Background & History: On June 29, 2009, the Board of County Commissioners signed an Option Agreement giving Biogreen Sustainable Energy Co. ("Biogreen") the exclusive option to purchase ten acres of unimproved land in the La Pine Industrial Site. Biogreen, based in St. Helens, Oregon, wishes to purchase acreage to build and operate a biomass power facility. Biogreen recently refined the plant design and finds that they need additional acreage to store fuel. Their engineer produced a drawing, the attached "Proposed Project Site Area", depicting a 19.5 -acre site as the total acreage requirement for this project. In addition to asking for additional acreage for the project, Biogreen asked Deschutes County to adjust the sales price downward to approximately $1.41 per square foot. Staff believes that this is a reasonable price for unimproved land in southern Deschutes County considering current market conditions. The power facility will generate 19.8 megawatts of electricity and create approximately 20 - 25 direct jobs and up to 90 indirect jobs in trucking, forestry, etc. Agreement Starting Date: 3/3/2010 Annual Value or Total Payment: $1,200,000 Ending Date: ❑ Insurance Certificate Received (check box) Insurance Expiration Date: 6/29/2011 Check all that apply: ❑ RFP, Solicitation or Bid Process ❑ Informal quotes (<$150K) ❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) 2/24/2010 Funding Source: (Included in current budget? ❑ Yes ❑ No If No, has budget amendment been submitted? ❑ Yes L No Is this a Grant Agreement providing revenue to the County? ❑ Yes ❑ No Special conditions attached to this grant: Deadlines for reporting to the grantor: If a new FTE will be hired with grant funds, confirm that Personnel has been notified that it is a grant -funded position so that this will be noted in the offer letter: ❑ Yes No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: T resa Rozic Phone Phone #: 385-1414 Department Director Approval: r I ` ' t:?'/.�cc i C Signature Date Distribution of Document: Original to Teresa Rozic Official Review: County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K) ❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. ) Legal Review Date Document Number 2123/201( REVIEWED LEGAL COUNSEL AMENDMENT TO OPTION AGREEMENT THIS AMENDMENT TO OPTION AGREEMENT is made and entered into by and between DESCHUTES COUNTY ("Owner") and BIOGREEN SUSTAINABLE ENERGY CO. LLC ("Optionee"). WITNESSETH: WHEREAS, Owner and Optionee entered into an Option Agreement (DC 2009-312) with an effective date of June 29, 2009, for ten (10) acres of unimproved real property identified as a portion of Tract E, La Pine Industrial Site, described as Lot 100, Section 14, Township 22 South, Range 10 East, Willamette Meridian, Deschutes County, Oregon, and WHEREAS, Optionee wishes to acquire additional acreage and Owner agrees to offer additional acreage at a revised purchase price; NOW, THEREFORE, Owner and Optionee agree that the Option Agreement is hereby amended to read as follows: 1. The second paragraph of the RECITALS is amended to read: "Optionee desires to acquire Nineteen and One -Half (19.5) acres, more or less, at the northeast corner of Tract E, bordering Reed Road and the Burlington Northern Railroad right-of-way (see attached map, marked Exhibit "A"), together with all other rights, hereditaments, and tenements appurtenant to the property (collectively referred to as 'the Property')." 2. Section 5 Purchase Price is amended to read: "The purchase price for the Property shall be One Million Two Hundred Thousand Dollars ($1,200,000.00), payable in full and in cash at closing. Optionee shall be given credit for Option Money Payment paid by Optionee to Owner." The effective date of this Amendment To Option Agreement is the date last indicated on the Document No. 2010-165 Page 1 of 2 Dig 2010 .. 165 signature page of this amendment. In all other respects the Option Agreement shall be and remain in full force and effect. OWNER: DATED this day of , 2010 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, CHAIR ATTEST: ALAN UNGER, VICE CHAIR Recording Secretary TAMMY BANEY, COMMISSIONER OPTIONEE: DATED this day of , 2010 BIOGREEN SUSTAINABLE ENERGY CO., LLC By: Rob R. Broberg CEO/President Document No. 2010-165 Page 2 of 2 PORTION OF TRACT E LA PINE INDUSTRIAL SITE LOCATED IN: NW 1/4 OF SECTION 14, T22S, R10E, W.M., DESCHUTES COUNTY, OREGON REED ROAD o 0o 30' 11• 12 300.95 14 N87:53'15”W 325.5..44.r"i N8911 '113”E 1 n• 'o REMAINDER PORTION' 19.50 ACRE 1 TRACT E • 200' 10 0' • • PORTION OF =3• TRACT E, LA PINE .=3 INDUSTRIAL SITE O I ti o• ;o O ti PROPOSED ' ' Q 4 BOUNDARY &1)44 ' c W �l 4. �O 2 cr co j ▪ r FOSS ROA REGISTERED PROFESSIONAL LAND SURVEYOR N8940'14'W 586.84' OREGON JULY 19, 1994 DAVID R. WILLIAMS 2686 RENEWAL DATE: 06/30/10 • • 1" = 300' • 091205/blo -site HWA3tl a WOW"M14 "Is WICKMAN, WILLIAMS & ASSOCIATES, INC vot w wAu min, wol,ro uY,.o"GOM 1"01 )MOM! 41.11.13!1 Ul 41 SY_Sall LAPINE BIOMASS FUEL PROCESSING FACILITY PROPOSED PROJECT SITE AREA SCALE: 1" = 300' 1DRAWN BY: DRW 1 DATE: 12/31/09 SH =ET 1/(1