The Albany City Council agreed Monday to give the buyer of the last Brandis property a two-month extension with the promise of nearly $190,000 in nonrefundable earnest money if the sale did not go through.
The city's economic development manager, Seth Sherry, did not reveal the identity of the buyer or the plans for the land but said it was zoned as mixed use commercial and could house a combination of retail and housing.
The Brandis property is made up of three properties, two of which the city has already sold. The land became city property after the Greater Albany Public Schools district planned to build Timber Ridge Middle School. The school district worked with the city to form a local improvement district to fund the roundabout at Knox Butte and complete the street and utility improvements along Timber Ridge Road. The city fronted the money and assessed properties that benefited from the improvements. The Brandis family owned three benefiting properties and ultimately came to an agreement with the city to hand over the property rather than pay the assessment.
The sale of the third piece of property was scheduled to close in January, Sherry said. However, the buyer requested a six-month extension, which the city granted. Sherry told the council on Monday that the buyer was now asking for another two months in order to take advantage of a tax incentive program.
Sherry said that the buyer was willing to offer $100,000 in nonrefundable earnest money in exchange for the extension in addition to the approximate $90,000 in earnest money the buyer has already offered. If the sale goes through, that money would go toward the purchase price of the property. If the sale falls through, the city would retain the funds.
The council approved the request. The new closing date is set for Sept. 30.