HomeMy WebLinkAboutItem 18 Sale of Surplus Property
AGENDA ITEM SUMMARY Meeting Date:
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S P R I N G FIE L D Staff Phone No:
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ITEM TITLE: SAbE OF SURPLUS REAL PROPERTY
January 22, 2008
Regular seSflJSion
Public Works
Len Goodwi
726-3685
10 minutes
ACTION
REQUESTED:
Conduct a public hearing to consider offers to purchase property previously
declared surplus and approve orreject a motion to direct staff to waive irregularities
in offers for the purchase of surplus real property of the City, accept an offer, and to
negotiate a sales agreement with the selected purchaser.
ISSUE
STATEMENT:
On September 17, 2007, the Council, by resolution, declared certain real property
surplus and directed staff to offer it for sale. Staff have received two offers to
purchase the property in question and recommend that Council select one of the
offers and direct staff to enter into negotiations on the terms of a sales agreement.
ATTACHMENTS: A.:
B.:
C.:
D.:
Offer submitted by Wallace L. and Gerion E. Dunks.
Offer submitted by Women's Care Properties, LLC.
Opinion of V alue by De Little, City Property Manager.
Resolution 07-42.
DISCUSSION/
FINANCIAL
IMPACT:
This action involves a parcel oflJr()perty,consisting of 0.47 acres, more or less,
which const.itutes aremnantparcel.let1overfromthe construction of Martin Luther
King, Jr.Parkway; The parcel' abuts: the- property of the two offerors. As Council
can observe, neither of the two offers submitted for this parcel comply with the
terms set-lQt;thin Resolution. Neither-offeris accompanied by a MAl appraisal and,
in addition,Jbe_Qffersubmitted bY\V;Qmen'sCare Properties, LLC was submitted
after thecdeadline'. for submission-:of;offers;.. Because neither proposal was
accompanied by an appraisal, City-.staffexamined the property and adjoining
properties and records of sales and property values. On the basis of that
examination, Ms. Little, who manages property held by the City for investment and
rental purposes, has formed the opinion that the value of the property is
approximately $30,000. Statutory standards.for the disposal of property of the City
allow for significant flexibility in the procedure used for disposal, and contain no
prohibition against waiving any irregularities that the Council may determine to be
immaterial. Given that the staff opinion of value is consistent with the terms of at
least one offer, staff believes that the irregularities associated with the offers can be
waived. For the same reason, staff recommends that the offer of Women's Care
Properties, LLC, be accepted.
During the consideration of the resolution, the Council indicated certain conditions
should attach to any sale of this property. Those conditions included the prohibition
against placement of billboards, placards or other advertising material on the
property. Staff recommends that in directing that negotiations be undertaken with
Women's Care Properties, LLC, that restriction, and any others the Council deems
prudent, be included in any agreement of sale. If the Council decides to accept an
offer, when an agreement is completed, staff will present that agreement for the
approval of the Council.
Wallace L. & Gerion E. Dunks
3065 Game Farm Road
Springfield, Oregon
97477-7582
NovGmb~r 6, 2007
Public Works Department
225 Fifth Street
Springfield, Oregon
97477
Dear Mr. Goodwin:
This is in answer to your letter of October 22, 2007.
Thanks for giving us the opportunity to submit an offer for
-described subject parcel that abuts our property.
We submit an offer of $1000.00 to purchase the
parcel..
11J~~
~ Wallace L. Dunks
~0 .E~dQLLnL~
Gerion E. Dunks
Attachment A, Page 1 of 1
WOMEN'S CARE PROPERTIES, LLC
3100 Martin Luther King Jr. Pkwy
Springfield, OR 97477
Phone: (541)686-4194
Fax: (541)341-3495
November 28, 2007
Leonard Goodwin
Assistant Public Works Director
225 Fifth Street
Springfield, OR 97477
Dear Len,
We are a group of Women's Care physicians that recently moved into our new office
building on the RiverBend campus. Our property is adjacent to the surplus property
recently offered for sale by the City of Springfield (map is attached).
We would be interested in acquiring this property to use for additional parking. Our offer
for this parcel is $30,000.
Please advise on next steps by contacting our administrator Karen Rutan (686-4194).
Sincerely,
r2t~ 4D--
Paul , { .
1!/P
Attachment B, Page 1 of 1
OPINION OF VALUE
TAX LOT 3200 AND REMNANT OF TAX LOT 3300
The property in question is located on Martin Luther King Jr. Parkway and immediately
adjacent to the newly constructed Women's Care Center. There is a two way approach to
estimating the value of the property and I will do my best to justify my approach.
The property is roughly one-half acre of land with many major utility and sanitary
easements that serve the new Peace Health Hospital now under construction. Due to its
many underground easements the property can not be built upon. At the present time it is
not improved with landscaping and is thus a maintenance issue for the City of Springfield
Public Works Department. It is further a liability if someone were to get hurt on the
property. It is not on the tax rolls and in its present state it does not enhance surrounding
development. Lane County has placed a value of$500.00 on the property.
The property in question could be of considerable value to the adjacent owner-
Women's Care Center. Possibilities could include additional parking and enhanced
landscaping for the Center, if Code allows such use. Requirements for parking and
development may include adjusting lot lines so the property in question is made a part of
the property now owned by Women's Care Center. Under such a circumstance, the value
of the property in question would greatly increase up to $14.00 per square foot, the cost
paid for the land of Women's Care Center. In other words, if in ten years the entire
parcel, including improvements were sold, the value would be at the then future appraisal
value of one piece of real estate, with no value differential for the "easement" burdened
land.
Based upon the above argument, my opinion of value for the City's excess owned land of
approximately one-half acre is in the range of $25,000 - $30,000. The sale would
eliminate the City's cost of maintenance and insurance of the land. It would place the
property back on the tax rolls. It would add significant value to the adjacent property
owner who would enhance the land and care for it. The sale would esthetically enhance
Martin Luther King Jr. Blvd.
Another approach for the sale of the land in question would be to advertise an Auction to
sell the land to the highest bidder. Most likely, the adjoining owner would offer the only
bid since the land only has value to him.
Respectfully submitted,
De Little
Property Management Coordinator
Attachment C, Page 1 of 1
RESOLUTION 07 - ~
A RESOLUTION DECLARING CERTAIN REAL PROPERTY OWNED BY THE..
CITY OF SPRINGFIELD SURPLUS AND DIRECTING THE CITY MANAGER
TO OFFER SUCH PROPERTY FOR SALE
WHEREAS, by warranty deed dated February 2, 1993, the City of Springfield
acquired certain parcels of real property including a parcel identified as Map 17032200,
Lot 3200, in Lane County (the "Property"); and
WHEREAS, said parcel was acquired from the Sycan B Corp.. in fee simple
absolute, and the City's ownership is not limited or qualified nor is the use of such real
property restricted; and
WHEREAS, such acquisition was a part of an acquisition of several similar
parcels constituting an abandoned railroad right of way of the Southern Pacific Company;
and
WHEREAS, except for this parcel, the parcels acquired were used for the
construction of the Martin Luther King, Jr. Parkway; and
WHEREAS, the design of the Parkway was such that this parcel, the Property,
was not required to be used for that purpose; and
WHEREAS, the City Manager has advised the Council that the Property is a
remnant which is not needed for public use; and
WHEREAS, pursuant to ORS 271.310, the City is authorized to sell or otherwise
dispose of property which is not needed for public use where the City's ownership is not
limited or qualified nor is the use of such real property restricted and the Council has
detennined that the property is not needed for public use; and
WHEREAS, in the event the City of Springfield desires to dispose of public
property which is not needed for public use it is required by ORS 221.725 to give not less
than five days public notice which notice shall state the time and place of a public hearing
concerning the proposed sale, a description of the property or interest to be sold, the
proposed uses for the property and the reasons why the city council considers it necessary
or convenient to sell the property; and
WHEREAS, Springfield Municipal Code Section 2.714 provides that the City
may dispose of surplus property by any means determined to be in the best interest of the
city with due regard for the value the city will receive from the disposal of the surplus
property;
RESOLUTION Page -1-
Attachment D, Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED, THAT The City Council hereby
fmds and determines that the Property is not needed for public use; and
BE IT FURTHER RESOLVED, that the City Manager is directed to provide
written notice to owners of any abutting property and to advertise in a paper of general
circulation that the City has detennined the Property is not needed for public use and that
the City will entertain any offers in writing for purchase of such property, provided such
offers are accompanied by an appraisal by an MAl certified appraiser; and
BE IT FURTHER RESOLVED, that the City Manager is directed to review any
offers for purchase of the property and may in his discretion secure a review of the
appraisal by independent competent appraiser, and if such offers be received, schedule,
pursuant to ORS 221.715, a public hearing at such time as he shall determine convenient
to permit the Council to take testimony and consider such offers; and
BE IT FURTHER RESOLVED, that this Resolution shall take effect upon
adoption by the Council and approval by the Mayor.
Adopted by the Common Council of the City of Springfield, Oregon, by a vote of
~ for and ~ against, this 17th day of September, 2007.
ATTEST:
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N:\City\RESOLUTl\sale of property. doc
REVIEWED & APPROVED
AS TO FORM
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DATE:~I Ie:> \t)~
OFFICE OF CITY ATTORNEY
RESOLUTION Page ~2-
Attachment D, Page 2 of 2
RESOLUTION NO. 07-42