The Tracy City Council on Monday approved a purchase agreement for the sale of the EDA-owned O’Brien Court to Lady Liberty Rentals for $1.2 million, marking one of the final steps of a four-year process that will turn the congregate care facility over to a new owner.
The EDA is the owner of the physical property only, nothing inside; Sanford Health has been leasing the property and has declined the first right of refusal to purchase the property. The EDA on May 11 held a public hearing on the sale of the property in accordance with state law and authorized the sale of the property, pending the approval of a purchase agreement by city council.
The resolution approved the purchase agreement and authorizes the EDA to sign the agreement as soon as the City receives written confirmation that Sanford Health will vacate the property prior to the Dec. 1, 2022, closing date. The $1.2 million in cash will be put into the City’s public housing fund; the use of those proceeds will be discussed and authorized by the council at a future date.
“I know it’s been a long time coming,” Tracy City Administrator Erik Hansen said. “I want to thank (city attorney) Matt (Gross) and (Tracy Community Development Director) Jeff (Carpenter) for being a bulldog on this. We had another letter of intent that fell through; this one came along, and it’s taken quite a lot of effort form a lot of people to make this happen. We think it’s a good thing for the city.”
The sale of O’Brien Court has been in the works for more than four years. For the past nine months, the EDA has been working with Greg Olson of Lady Liberty Rentals on the purchase of O’Brien Court, while collaborating with Sanford Health.
Lady Liberty Rentals has given the city assurances that it intends to continue to operate O’Brien Court as it is currently operating. The purchase agreement explicitly states that it is required to use the property consistent with its current use for at least a year and if it were to sell the property, there also is a right of first refusal for the City to purchase the property in the event that it wishes to sell to a buyer who does not desire to continue to use the property as it is currently being used.
Look for more in this week’s paper.