The city anticipates closing on the block next June 4, and no later than July 1, the document reveals.
In the event that the closing does not occur by Dec. 31, 2004, the city is obligated to offer the Bergers $23.25 million. If the Bergers decline the offer, the city is free to choose any other site for the hotel.
The city outlined what it called "favorable terms" supporting the purchase.
First, the site is ready for development. There are no buildings to demolish, no tenants or businesses to relocate.
The Berger block costs substantially less than adjacent blocks after factoring in the purchase price, demolition cost and construction costs. The city will save $100,000 per month in construction/finance costs by being able to begin hotel construction in July, compared to a site needing buildings vacated and demolished prior to construction.
The city will pay no option fee, penalty or accrued interest if closing does not occur related to due diligence or hotel financing issues.
Also, there is no price increase until December 2004. If that deal can't be concluded during the next two years, the block is returned to the open market. The Bergers can try to raise the price or the city can seek another alternative.
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