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HomeMy WebLinkAboutItem 14 Sale of property 725 S 57th StAGENDA ITEM SUMMARY SPRINGFIELD CITY COUNCIL Meeting Date: Meeting Type: Staff Contact/Dept.: Staff Phone No: Estimated Time: Council Goals: 1/18/2022 Regular Meeting Vahana Keene/CMO (541) 726-3700 20 Minutes Encourage Economic Development and Revitalization through ITEM TITLE: APPROVAL TO SELL CITY -OWNED REAL PROPERTY AT 725 S 57TH STREET ACTION Authorize/not authorize the City Manager to prepare and list for sale City -owned REQUESTED: real property located at map 18-02-04-11 tax lot 04600 and addressed as 725 57th Street, with real estate agent Brandy Huynh of Re/Max Integrity. ISSUE The City purchased in 2010 a 1.5 acre low density residential (LDR) parcel located STATEMENT: at map 18-02-04-11 tax lot 04600. The property was acquired for $405,000 with the intent to redevelop into a new Springfield Fire Station. The property, which includes one vacant single family structure, is no longer needed for Fire and Life Safety purposes and the City might pursue a market rate sale of the parcel. ATTACHMENTS: Attachment 1 — Property Map and Summary Sheet Attachment 2 — Recommended Real Estate Agent Information DISCUSSION/ The purchase of the 1.5 acre tax lot 4600 for $405,000 in 2010 was facilitated by FINANCIAL the City to support the Springfield Fire Department's efforts for facility planning. IMPACT: After further evaluation, and following the Eugene -Springfield Fire and Life Safety services functional consolidation, the location was deemed unnecessary for fire services, although a small northern portion of the property (approx. 0.3 acre) was carved off for City storm water needs. In 2018, the Council directed staff to engage affordable housing providers to explore affordable housing redevelopment opportunities on the remaining 1.2 acre site. This process was unsuccessful for a number of factors including property size and costs associated with developing the site. The 1.2 acre site currently includes a 1,735 SF unoccupied single family residence and is without future redevelopment plans by the City. As the City does not have a formal practice of operating residential properties for lease without future intent to participate in redevelopment, the Council might consider listing the property for sale. Staff have engaged multiple real-estate brokers and is recommending contracting with Brandy Huynh of Re/Max Integrity to list the property at current market rates and for no less than the 2010 City purchase price of $405,000. Should the Council authorize the listing of the property, the site would first benefit from minor landscape and structure repairs to increase marketability. Staff suggests allocating a Not to Exceed budget of $10,000 for the hiring of a third -party vendor for this maintenance and repair work. The property might be listed beginning in early Spring 2022 with a goal of capitalizing on the Spring and Summer market conditions. Offers might be anticipated from buyers interested in maintaining the site as a single family residence or residential developers looking for redevelopment opportunities. Any received offers would be brought back to the Council for review, discussion and formal direction. 725 SOUTH 57TH STREET PROPERTY SUMMARY SHEET Map 18-02-04-11, Tax Lot 04600 Addressed: 725 South 57th Street Springfield, Oregon 97478-6906 City 2010 Purchase Price: $405,000 Purchased With: General Fund Physical Characteristics: Property Size: 1.21 Acres Total Home Scl Ft: 1,735 Bedrooms: 3 Bathrooms: 1 Year Built: 1966 Annexed: 2008 $500.000 $400,000 $300,000 $200,000 $100.000 $0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Year Zoned: Low Density Residential (LDR) 2010 County Listed Real Market Value (RMV): $240,167 2021 County Listed Real Market Value (RMV): $453,420 2021 Property Taxes Paid: $4,057.98 ATTACHMENT 1, PAGE 1 OF 1 REAL ESTATE BROKER INFORMATION SHEET Recommended Broker/Firm: Brandy Huynh, Re/Max Integrity More than 11 years of local experience, specializing in representing buyers and sellers, relocation, and country properties. Website: bra ndyhuynh.remax.com Address: 4710 Village Plaza Loop Ste 200, Eugene, OR 97401 License: 200912121 About: Ms. Huynh is a native Oregonian and has lived in the Willamette Valley for over 35 years. Reviews from clients consistently reflect high scores and positive feedback. Staff Recommendation: Ms. Huynh was engaged by staff and provided an overview of strategies for listing the property. She reflected strength in perspective of the site's opportunity, recommendations for minor repairs and beautification upgrades to improve resale opportunity, and a portfolio which reflected significant experience in listing Springfield area properties. Ms. Huynh's proposed commission is 4.5%, the lowest commission of those agents engaged by staff. ATTACHMENT 2, PAGE 1 OF 1