7.9.
CC Regular Session
- Meeting Date:
- 01/08/2013
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Consider Offer to Purchase Surplus City Owned Land -- Windsorwood Property--PORTIONS MAY BE CLOSED TO THE PUBLIC
Background:
As part of the Council's 2011 and 2012 strategic planning process, developing an inventory of surplus City owned land was identified as a priority. A parcel located at 178th Ave and Vicuna St, known as the Windsorwood property, was identified as surplus City owned land ("Subject Property"). With Council direction, Staff has worked with nearby property owners to negotiate a sale of the Subject Property.
The purpose of this case is to consider an offer of $40,000 from David Pomroy to purchase the Subject Property.
The purpose of this case is to consider an offer of $40,000 from David Pomroy to purchase the Subject Property.
Notification:
NA
Observations:
The Subject Property was brought before the Council a number of times in 2012; and was rezoned R1 Residential in October. Staff worked with nearby property owners to gage interest in purchasing the Subject Property. Interest in the Subject Property was expressed by three nearby property owners. At an October Council worksession, Staff was directed to give nearby property owners the "first chance" to purchase the Subject Property.
Since October, Staff sent a letter to nearby property owners indicating they had a "first chance" to negotiate a sale. Since then, Staff has received one written offer to purchase the Subject Property: $40,000, David Pomroy, 8950 178th Circle NW.
The County values the Subject Property at $50,000. A private appraisal of the Subject Property came in at $49,000. Mr. Pomroy's offer is below both the County and privately appraised values ($40,000).
Attached to this case is all correspondence between the City and nearby property owners, a property profile, adopted ordinance to rezone the Subject Property, written offer from Mr. Pomroy, findings of fact, private appraisal and Policy for the Disposition of City Owned Land.
Since October, Staff sent a letter to nearby property owners indicating they had a "first chance" to negotiate a sale. Since then, Staff has received one written offer to purchase the Subject Property: $40,000, David Pomroy, 8950 178th Circle NW.
The County values the Subject Property at $50,000. A private appraisal of the Subject Property came in at $49,000. Mr. Pomroy's offer is below both the County and privately appraised values ($40,000).
Attached to this case is all correspondence between the City and nearby property owners, a property profile, adopted ordinance to rezone the Subject Property, written offer from Mr. Pomroy, findings of fact, private appraisal and Policy for the Disposition of City Owned Land.
Recommendation:
Listed below are three options the Council should consider regarding the standing offer ($40,000) from David Pomroy to purchase the Subject Property:
1. Accept the offer of $40,000 from Mr. Pomroy [STAFF RECOMMENDATION]
The Council indicated a preference to sell the Subject Property to surrounding property owners (rather than the general public).
Given the current strength of the real estate market, especially residential, an offer of $40,000 to purchase the Subject Property is realistic and competitive.
2. Re-negotiate with Mr. Pomroy for a higher sale price
Attempting to renegotiate with Mr. Pomroy would result in one of two scenarios. First, the City yields a premium. Two, Mr. Pomroy decides he no longer wants to negotiate, and would rather wait until the Subject Property is opened to the general public. In either case, the City loses tax revenues (until the property is sold) and takes the risk of getting offers less than $40,000--which is not unrealistic.
NOTE: More specific information regarding this explanation can be provided at the closed session meeting (if needed).
3. Open the sale of the Subject Property to the general public
Attempting to sell the Subject Property to the general public would yield a small premium (best case scenario). However, opening to the general public would likely require the use of a real estate agent; and subsequently a commission fee. In the end, the City would "net" a similar revenue, or potentially even less than the standing offer.
Additionally, the longer it takes to sell the Subject Property the greater the tax revenue loss.
Funding Source:
NA
Council Action:
Staff Recommendation: Accept the standing offer of $40,000 from David Pomroy to purchase the Subject Property.
NOTE: staff will bring forward a purchase agreement and required ordinance to sell publicly owned land at the next regular City Council meeting.
NOTE: staff will bring forward a purchase agreement and required ordinance to sell publicly owned land at the next regular City Council meeting.
Attachments
- Notification Letter 1
- Notification Letter 2
- Notification Letter 3
- Notification Letter 4
- Notification Letter 5
- Property Profile
- Appraisal (49K)
- Findings (Windsorwood)
- Rezoning Ordinance
- Disposition Policy
- Written Offer
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 01/03/2013 03:47 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 01/02/2013 02:34 PM
- Final Approval Date:
- 01/03/2013