HomeMy WebLinkAboutItem 03 Gateway Area Property Sale AGENDA ITEM SUMMARY Meeting Date: 4/12/2021
Meeting Type: Regular Meeting
Staff Contact/Dept.: Courtney Griesel, CMO
Staff Phone No: 541-726-3700
Estimated Time: 10 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Encourage Economic
Development and
Revitalization through
Community Partnerships
ITEM TITLE: GATEWAY AREA PROPERTY SALE
ACTION
REQUESTED:
Authorize/not authorize the City Manager to negotiate and execute a Purchase and
Sale Agreement with BOEV LLC for sale of City owned real property located at
the corner of Gateway Blvd. and Beltline (map 17-03-22-20, taxlot 1300) at a total
sale price of $10.31 per square feet.
ISSUE
STATEMENT:
In February of 2021, the City completed acquisition of 0.77 acres from the Oregon
Department of Transportation (ODOT) located at the corner Gateway Blvd. and
Beltline Hwy. The City purchased two taxlots (1200 & 1300) for a total of
$345,000. Based on prior Council authorization, staff have negotiated sale terms of
only the south taxlot 1300 to BOEV LLC to expedite future redevelopment of
adjacent parcels. Negotiated terms include a sale price of $10.31 per square feet,
reflective of the City’s recent purchase price from ODOT.
ATTACHMENTS: Attachment 1 – Map of Real Property and Adjusted Area
DISCUSSION/
FINANCIAL
IMPACT:
The City has worked for the past five years to complete acquisition of two taxlots
(1200 & 1300) from ODOT. This acquisition has been a priority in order to
facilitate ownership of the Springfield Flame Sculpture site (lot 1200) and the
redevelopment of taxlot 1300. Both taxlots lack legal vehicular access from
Gateway Blvd and would be reliant on future access from the adjacent property
owner, BOEV LLC. Additionally, taxlot 1300 includes a conditioned letter of No
Further Action (NFA) from DEQ due to the environmental impacts from a past gas
station user on the site. In February, the City completed the purchase of the two
taxlots and 0.77 acre site for $345,000 ($10.31 p/sf) based on an updated appraisal,
the site’s restricted access and the historic environmental conditions.
In order to maximize development potential and resale value to the City, staff is
completing final stages of a lot line adjustment to increase the size of the southern
taxlot 1300 and decrease the Flame Sculpture site to include only the ground
needed for the sculpture and future landscape improvements. With this lot line
adjustment, the redevelopable taxlot 1300 to be sold is estimated to increase from
20,473 SF to approximately 22,000 SF. The City would retain lot 1200, with an
estimated final size of 13,000 SF for future sculpture landscaping.
Staff seeks Council authorization for the City Manager to complete negotiation with
BOEV LLC and sign a Purchase and Sale Agreement for the sale of only taxlot
1300 at a price of 10.31 per square feet (estimated single lot sale price of $226,000)
dependent on final surveyed and recorded lot size. Other terms to be included in
this agreement will be completion of additional review and work by the City with
DEQ related to a reopening, review and update of the site’s current Letter of NFA.
In addition, before formal transfer of property to BOEV LLC, the City Council
must hold a public hearing and declare taxlot 1300 “surplus property.” The sale is
contingent on the Council’s final decision after that public hearing.
TAXLOT 1300
TAXLOT 1200
ATTACHMENT 1, PAGE 1 OF 1