Consideration and Possible Adoption of Ordinance No. 2014-01:  Authorizing the sale of property located at 400 South Malpais Lane including the following parcels: Assessors Parcel Numbers 103-06-003B, 103-06-017A, 103-06-018A and 103-06-019. (Fire Station No. 7)

The sale of the property will provide the funds necessary to balance the Capital Project Fund used to pay for the construction of the new Fire Stations. The remainder of the funds will be available as one time funding in the General Fund. The sale will also reduce potential maintenance costs and provide for the redevelopment of a parcel of land and its inclusion as taxable property. 

The sale of the property will provide $$610,199. Approximately $91,000 will be used to balance the Capital Project Fund that was used to build the new Fire Stations. The remainder, approximately $520,000 will benefit the General Fund. The sale will also reduce City ongoing maintenance costs and generate revenue through the land becoming taxable. 

11. Effective governance

City Council directed staff to sell these properties in January of 2013.

1) Approve the sale of 400 S Malpais Lane and the additional parcels to Leadership Circle, LLC for $610,199 and authorize the City Manager and staff to execute the necessary documents. 
2)Not approve the sale of 400 S Malpais Lane and  the additional parcels and direct staff to retain the property or to find an alternative use. 
3)Not approve the sale of 400 S Malpais Lane and the additional parcels and direct staff to perform a new procurement process with different parameters. 

The property under consideration contained a fire station located in La Plaza Vieja.  The fire station was decommissioned after new fire stations were built in order to improve community wide coverage.  The structure still remains on the property.  The construction of the new fire stations was performed through a Capital Project Fund and the sale proceeds of the decommissioned properties are being used to balance the account and generate additional revenue.  The parcels incorporated in this sale also include a parking area and a floodplain area.  The floodplain area, which is a significant portion of the property, is being protected by an easement that prevents development and preserves the City's right to perform drainage improvement projects.  The Five Points Drainage Improvements: Clay Avenue Wash Project and Rio de Flag Flood Control Project will both require the use of portions of the parcels.  The parcels were included in the sale, rather than retained in the City's inventory, in part to provide contiguous rights to Milton Avenue which enhances the value of the property significantly by providing the ability to place signage along Milton Avenue.    Based on an appraisal of the property with significant drainage encumbrances, the minimum bid was set for $460,000. 

Staff conducted a solicitation for a sealed Invitation for Bid that ran for four weeks and was advertised twice in the AZ Daily Sun. Only one bid was received from Leadership Circle, LLC and was determined to be the highest responsive, responsible bidder.  

A portion of the proceeds will be allocated to balance the Capital Project Fund that was used build the new fire stations.

The additional proceeds will benefit the General Fund.

The sale will remove a property from the City inventory and therefore eliminate the need for ongoing maintenance.

The sale will place the land in private ownership and the land will become taxable.

The sale will benefit an existing business and allow for redevelopment of a currently underutilized area. 

Inform

Numerous conversations were had with residents living within the La Plaza Vieja Neighborhood Association regarding the sale.

Approve the sale of 400 S Malpais Lane and the additional parcels to Leadership Circle, LLC for $610,199 and authorize the City Manager and staff to execute the necessary documents.  This will provide the benefits described above.

Not approve the sale of 400 S Malpais Lane and  the additional parcels and direct staff to retain the property or to find an alternative use.  This will not provide financial benefit to the City, but could provide benefit through an alternative use.

Not approve the sale of 400 S Malpais Lane and the additional parcels and direct staff to perform a new procurement process with different parameters.  This will prevent or delay the financial benefit to the City.