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| The county has the opportunity to realize a nearly $20 Million Dollar profit if a deal that has been put forward for the purchase of OLF-8 is approved by the board of county commissioners and actually closes. |
The board has received an offer to negotiate / letter of intent for the purchase of the entire OLF-8 property from Escambia County for $33 Million Dollars Cash.
The offer letter was distributed to me an my counterparts this morning.
from the letter:
"The general terms and conditions upon which Purchaser proposes to purchase “The Property” are as follows:
1. Purchase Price. The Purchase Price shall be $33,000,000.00 at a single closing.
2. Terms. The Purchase Price will be paid in cash at closing.
3. Earnest Money. Within Thirty (30) days after effective date of the Definitive Agreement, Purchaser shall deposit Earnest Money in the amount of One Million Dollars ($1,000,000.00) into an escrow account. A portion(s) of the earnest money will become non-refundable during the Inspection Period based on predetermined milestone(s) established during the negotiation and execution of the Definitive Agreement."
The agreement goes on to state the following:
"....Purchaser recognizes that Escambia County intends to utilize funds from the Triumph Grant for certain improvements associated with the OLF-8 project. Purchaser intends to cooperate with Escambia County in meeting the requirements contained in Grant Award Agreement. From and after the execution of this letter, Seller agrees to negotiate exclusively with Purchaser and to refrain from offering or negotiating with any other party for the sale, lease or other disposal of the Property directly or indirectly from the date hereof until the earlier of the closing of the sale or the termination of this letter of intent or the Definitive Agreement. Seller shall not solicit, initiate, pursue, entertain offers, or otherwise consider or accept any other offers with respect to the Property or enter into any contract of sale, lease or similar agreement with respect thereto pending the earlier of the closing of the sale or the termination of this letter of intent or the Definitive Agreement."
Lots to unpack with this offer in hand, lots to consider. This buyer is a huge national nameed company with significant financial resources. If the deal were to be made, the county would be clearing nearly $20 Million dollars over and above the costs of acquiring OLF 8 -- which would be a tremendous win for the county and the taxpayers. $20 Million buys a LOT of badly needed infrastructure. Lots of it.
We have 10 days to answer this initial letter.
Much more to come on this later in the week....
