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HomeMy WebLinkAboutItem 18 Sale of Surplus Property AGENDA ITEM SUMMARY Meeting Date: Meeting Type: Department: Staff Contact: S P R I N G FIE L D Staff Phone No: C I T Y C 0 UN C I L Estimated Time: 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: ~ N:\City\RESOLUTl\sale of property. doc REVIEWED & APPROVED AS TO FORM ...:)0 ~<-I'\" ~ '- ~ \~ DATE:~I Ie:> \t)~ OFFICE OF CITY ATTORNEY RESOLUTION Page ~2- Attachment D, Page 2 of 2 RESOLUTION NO. 07-42