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Entrada land sale amended

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By Jennifer Garcia

By now, just about everyone knows that changes are coming to the airport basin.

The Entrada project is well underway and at least one business has already claimed their stake in the new business development.

Main Gate, LLC agreed to purchase county owned property, however, amendments to that agreement have been made and the terms of the sale have changed, as well.

Assistant County Administrator Anthony Mortillaro was in council chambers last Tuesday to present a restated purchase, sale and license agreement with Main Gate LLC.

The motion was approved 7-0.

In February, Main Gate, LLC agreed to purchase county owned property, then in April, the County Council approved the purchase, sale and license agreement with Main Gate LLC for the development of A-3, A-7 and A-3-1 at Entrada Business Park.

The agreement was amended in March and again in July. With the July amendment, the agreement was restated as a new agreement.

One of the main changes in the agreement would change the purchase price of the property from $188,853.09 per acre to $216,923.93 per acre.

According to county documents, the new price represents the appraised value of the property improved with the off-site utilities.

The price will not be discounted for the value of the off-site utilities as was initially contemplated, since Main Gate may not actually purchase                                          the full 18.1 acres originally contemplated.

Due to economic conditions, Main Gate intends to purchase Friday, approximately 5.5622 acres representing Lots 1 through 5. An option provision for purchasing the remaining acreage remains in the agreement, although modified.

The county will pay for off-site improvements made for the benefit of the entire 18.1 acres including the utility extensions, construction of the access road and SR 502 modifications.

Council Vice Chair Robert Gibson asked Mortillaro whether the smaller parcels were worth more per acre.

Mortillaro said, “It follows the original agreement for 18 acres. We’re not selling it as subdivided property at this time.”

Gibson pointed out that they are now looking at a fundamentally different deal.”

“Forget what happened two years ago. We’re here today,” Gibson said.

Mortillaro said that the property was subdivided “so there’d be a plat and they could realign the road.”

Gibson asked whether the right to buy individual lots at the per acre price exists.

“The lot shall be further replanted into multiple lots,” Mortillaro said. “We’re at market value for what we’re selling at today,” he continued.

Though the original closing date for this agreement was      Oct. 7, it was changed to Friday  because the roadway construction took longer, therefore it extended the closing on the property.

Councilor Jim West seemed to see the new agreement as a positive step toward development.

“When the land is subdivided it sells for less. What’s left is going to be worth a lot more. It gives the first developers incentive to develop.”

Council Chair Jim Hall shared West’s sentiment on the new agreement.

“Market values in this town at this time are not as high. It looks like a good deal for the county,” he said.