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HomeMy WebLinkAboutAmend Option Agrmt - Silvan PowerDeschutes 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 Wednesday, August 13, 2008 Please see directions for completing this document on the next page. DATE: July 31, 2008 FROM: Susan Ross Property & Facilities 383 6713 TITLE OF AGENDA ITEM: Consideration of Signature of Document No. 2008-454, an Amendment to Option Agreement with Silvan Power Company to Extend Option Period for Property in La Pine Industrial Park. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: On February 21, 2007, Deschutes County entered into an option agreement with Silvan Power Company for 28 acres of La Pine Industrial Park property located in the Finley Butte Addition Phase 2. Silvan Power has requested a two-year extension of that option to February 2011. Optionee has provided the attached letter explaining the need for the extension, the accomplishments to date, and the tasks yet to be completed. Optionee paid a $28,000 option money payment for the original option. They will be required to pay another $28,000 nonrefundable option money payment for this extension. FISCAL IMPLICATIONS: An additional $28,000 option money payment will be required as part of the option amendment. RECOMMENDATION & ACTION REQUESTED: Board approval and signature of Amendment to Option Agreement, Deschutes County document number 2008-454. ATTENDANCE: Susan Ross DISTRIBUTION OF DOCUMENTS: Silvan Power Company REVIEWED LEGAL COUNSEL AMENDMENT TO OPTION AGREEMENT (DC 2008-454) THIS OPTION AGREEMENT AMENDMENT is made and entered into by and between DESCHUTES COUNTY, a political subdivision of the State of Oregon ("Owner") and SILVAN POWER COMPANY ("Optionee"). WITNESSETH: WHEREAS, Owner and Optionee entered into an Option Agreement (DC 2007-014) with an effective date of February 21, 2007, for property described as 28 acres of land in the La Pine Industrial Park Finley Butte Addition Phase 2, La Pine, Oregon, and WHEREAS, Owner and Optionee wish to extend the term of the Option; NOW, THEREFORE, Owner and Optionee agree that the Option Agreement is hereby amended to read as follows: Section 1. Section 2.1, Term, is amended to read as follows: "The term of this option shall be two years from the expiration of the original Option Agreement. If the expiration date falls on a Saturday, Sunday, or legal holiday recognized by the State of Oregon, Optionee's rights during such time period shall extend until 5 p.m. on the next business day. An additional option payment of $28,000 is due within 14 days after the date of this Amendment to Option Agreement." In all other respects, the Option Agreement shall be and remain in full force and effect. OWNER: OPTIONEE: Deschutes County Board of Commissioners Dennis R. Luke, Chair Tammy (Baney) Melton, Vice Chair Michael M. Daly, Commissioner Date: Recording Secretary Silv Power Company .finra 84°4 i Lou Gillette, CEO Date: olaL7 2-40 Page 1 of 1 — Amendment to Silvan Power Option Agreement — DC 2008-454