Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 08/12/2013
- TITLE
- Approval of Sale of Tract 2, C/S 3426, to Shawn L. and Jill R. Egan
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
Information
PROBLEM/ISSUE STATEMENT
On February 22, 2010, City Council approved Resolution of Intent #10-18913 to sell the subject property and set a public hearing date of March 22, 2010. The public hearing was held on March 22, 2010 and City Council approved Resolution 10-18922 authorizing City staff to sell C/S 3426, Tract 2 located at 2229 Blue Creek Road. Over the past 3 years, pursuit of the property sale had been on hold while the property was considered as a potential site for another City facility. Once the property was no longer being considered for that facility, staff advertised the property for sale. After not receiving an offer on the property during an April, 2013 advertising period, the property was advertised again on four consecutive Sundays in June, and the following four offers were received on July 12, 2013:
As shown on the attached plat, C/S 3426, Tract 2 has an area of 10.9 acres. Tract 1 is 0.5 acre in size, contains the Briarwood Sewer Lift Station and will be retained by the City. Tracts 1 and 2 were purchased by the City for $550,000 in the summer of 2006 for the purpose of siting and constructing the lift station. With construction of the lift station, the Public Works Department satisfied its facility needs at the site and believes the remaining property (Tract 2) would better serve the public if sold and developed privately.
Beyond approval by City Council and development of an acceptable sales agreement, sale of the property is contingent upon the buyers executing a Perpetual Right-of-Way Easement for the existing and proposed gravity sanitary sewer mains located within the property as shown on the attached plat. Shawn and Jill Egan have been notified that they submitted the highest offer, and they appear agreeable to the described contingencies.
| Shawn L. and Jill R. Egan | $250,000 |
| Larry V. Larsen | $165,000 |
| Jerry Jones | $100,000 |
| Steven Fosjord | $ 10,000 |
As shown on the attached plat, C/S 3426, Tract 2 has an area of 10.9 acres. Tract 1 is 0.5 acre in size, contains the Briarwood Sewer Lift Station and will be retained by the City. Tracts 1 and 2 were purchased by the City for $550,000 in the summer of 2006 for the purpose of siting and constructing the lift station. With construction of the lift station, the Public Works Department satisfied its facility needs at the site and believes the remaining property (Tract 2) would better serve the public if sold and developed privately.
Beyond approval by City Council and development of an acceptable sales agreement, sale of the property is contingent upon the buyers executing a Perpetual Right-of-Way Easement for the existing and proposed gravity sanitary sewer mains located within the property as shown on the attached plat. Shawn and Jill Egan have been notified that they submitted the highest offer, and they appear agreeable to the described contingencies.
ALTERNATIVES ANALYZED
The Council may:
- Approve the sale of C/S 3426, Tract 2; or
- Do not approve the sale of C/S 3426, Tract 2.
FINANCIAL IMPACT
To this point, minor mailing and advertising costs have been incurred. Proceeds from the sale will go to the wastewater fund.
RECOMMENDATION
Staff recommends that Council approve the sale of C/S 3426, Tract 2 to Shawn L. and Jill R. Egan in the amount of $250,000 contingent upon execution of an acceptable sales agreement and Perpetual Right-of-Way Easement agreement for the existing and proposed gravity sanitary sewer mains located within the property.