HomeMy WebLinkAboutItem 01 Downtown Property Acquisition AGENDA ITEM SUMMARY Meeting Date: December 14, 2020
Meeting Type: Regular Session
Department: City Manager’s Office
Staff Contact: Courtney Griesel
S P R I N G F I E L D ECONOMIC Staff Phone No: 541-726-3700
DEVELOPMENT AGENCY Estimated Time: 20 Minutes
ITEM TITLE: DOWNTOWN PROPERTY ACQUISITION
ACTION
REQUESTED:
Authorize/Not Authorize the City Manager to draft and execute an agreement to
purchase Downtown area real property located at map 17-03-35-42 taxlot 04600
from Willamalane Park and Recreation District for a not to exceed cash price of
$785,000.00 and within the terms outlined in this memo and discussed during the
December 14 SEDA Board meeting.
ISSUE
STATEMENT:
Acquisition of Willamalane Park and Recreation District owned real property
located at 17-03-35-42-04600 by the Springfield Economic Development Agency
(SEDA) is proposed at $785,000.00, assumes SEDA/City responsibility for
rezoning, and provides allowances for Willamalane to remain as a tenant in the
building in a short-term interim basis.
ATTACHMENTS: Attachment 1 – Identified Site Vicinity Sheet
Attachment 2 – SEDA Offer Letter
DISCUSSION/
FINANCIAL
IMPACT:
The Springfield Economic Development Agency (SEDA) continues to make
substantial investments in Downtown. The Willamalane Park and Recreation
District owned real property located at 17-03-35-42-04600 and addressed as 735
and 765 A Street provides an opportunity to purchase a redevelopment site which is
considered to be within the Downtown core and adjacent to nearby land under
redevelopment consideration.
The site can be generally described as;
•located at the corner of 7th Street and North A
•0.39 acres of land currently zoned as Public Lands and Open Space (PLO)
•17,700 +/- SF of existing building
A 2019 appraisal valued the property at $800,000.00. An environmental assessment
has been completed and indicated no concerns and property condition assessments
has determined the building to be in overall satisfactory conditions and adequately
maintained.
Proposed general terms of sale for SEDA review and authorization are summarized
below.
a)SEDA ‘cash’ purchase price of $785,000.00
b) SEDA/CITY responsibility to rezone property from PLO to Mixed-Use
c)Willamalane to remain a tenant of the property for a maximum of 6 months
at $0/month and paying all utilities. The site will not incur taxes during this
time.
Staff seeks SEDA Board authorization for the City Manager to complete
negotiations with Willamalane and sign a Purchase and Sale Agreement for the
exchange of real property as described above, in addition to any other terms
directed by SEDA during this regular session.
ATTACHMENT 1, PAGE 1 OF 1
MEMORIAL BUILDING SITE; 735 & 765 A STREET, SPRINGFIELD, OREGON
Downtown Site Vicinity Image (11/2020)
POST OFFICE
A STREET
CITY OF SPRINGFIELD, OREGON
C
CITY MANAGER’S OFFICE
LEGISLATIVE & PUBLIC AFFAIRS
ECONOMIC DEVELOPMENT
CITY RECORDER
225 FIFTH STREET
SPRINGFIELD, OR
97477
(541) 726-3700
FAX (541) 726-2363
November 24, 2020
Willamalane Park and Recreation District
Greg James, Board President
Michael Wargo, Superintendent
Board President James and Superintendent Wargo
The Springfield Economic Development Agency (SEDA), an Agency of the City of Springfield Oregon, is providing this
letter to express interest in acquiring real property in the Downtown area of Springfield and under current
ownership of Willamalane Park and Recreation District. The specific parcel(s) include 0.39 acres of land and
associated improvements located at map and taxlot 17-03-35-42-04600, and referred to as the Memorial Building .
Based on the May 2019 appraisal report completed by Duncan and Brown, and in subtracting costs related to
completing the rezoning of the parcel from public land and open space (PLO) to the appraised mixed-use zoning,
SEDA is offering to purchase the parcel from Willamalane for a total purchase price of $785,000. This offer reflects a
value that assumes a transfer of the property from Willamalane to SEDA as PLO, with SEDA or the City of Springfield
taking responsibility for completing the rezone. SEDA is willing and able to close on this property within the next 30
days or sooner and would be able to support an inhouse purchase and sale drafting and closing process.
This offer is not intended to create a binding agreement, nor does it address all important topics known and
unknown at this time. However, it is intended to capture the Springfield Economic Development Agency’s intent and
desire to proceed with a market rate cash transaction and purchase of the site within the following 30 days or
sooner.
Please feel free to reach out at your earliest convenience with any questions or response.
Sincerely,
Courtney Griesel
Economic Development Director
City of Springfield and Springfield Economic Development Agency
Cc:
Nancy Newton, Springfield City Manager
Chair Woodrow, Springfield Economic Development Agency
Eric Adams, Willamalane Park and Recreation District