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Regular   3.
Regular City Council Meeting
Meeting Date:
12/19/2016
TITLE
Purchase property located at 2305 9th Avenue North
PRESENTED BY:
Bruce McCandless
Department:
City Hall Administration
Presentation:

PROBLEM/ISSUE STATEMENT

The City Council is being asked to approve purchasing property in the North Park area that may assist with the new 9-1-1 Emergency Communication Center's (ECC) construction and possibly its long-term operations.  Alternatively, the City may hold and then sell the property for future residential redevelopment. 

ALTERNATIVES ANALYZED

City Council may approve purchasing 2305 9th Avenue North or may choose to not purchase it.  There is no other nearby and available land that could be used for ECC purposes.  If the land isn't used for public purposes, it could be sold for residential redevelopment.     

FINANCIAL IMPACT

The General Fund will be used to purchase the property.  If the ECC needs the property for its operations or future expansion, the 9-1-1 Fund could reimburse the General Fund.   

BACKGROUND

The City purchased 21,000 sq. ft. of property at 2315 and 2325 9th Avenue North for $335,000 in March 2016.  A residence and three commercial buildings are being demolished.  The land will host the new ECC and design is proceeding, with construction expected to begin in 2017.

The subject property is located east of the alley in the same block as the ECC property and is addressed as 2305 9th Avenue North.  It has 16,000 sq. ft. of land and has a house, a garage and a shop on it.  The City Administrator made a contingent offer for the property in October, 2016.  The property has been appraised by two (2) qualified residential appraisers.  One considered it a primarily residential property and suggested a value of $164,500.  The other appraiser decided that the highest and best use would be commercial or public and valued the property at $225,000.  The low appraisal is about 6% below the offered price, but the high appraisal is about 27% greater than the offer.  The square foot price is 30% lower than the next-door ECC property purchase.  The property owner desires to conclude the sale by the end of the year.  

The City hired a local company to prepare a Phase 1 Environmental Assessment and as usual with older buildings, there is probably lead paint and asbestos thermal wrap in them.  The owner will remove all personal property from the buildings, including empty storage barrels and some equipment, but there is no evidence or history of serious contamination.  The paint and asbestos will have to be removed by a qualified environmental remediation company if the City remodels the buildings or demolishes them.  

The immediate plan is to secure the buildings from entry and to use the land for material and equipment staging and parking for the ECC construction.  After construction, staff will assess parking and operational needs of the ECC and make additional recommendations to Council about the property's long-term use.  The property has a deed restriction that requires that the land be used in conformance with zoning.  The property is zoned Residential 7000, so permanent public use may require a zone change.        

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