ITEM TITLE:
Approval to Negotiate the Purchase of Lot 2, Sleepy Hollow Addition #5 (14.88 Acres) and Parcel A, USS 349 (18,655 ft²).
SUBMITTED BY: Lisa Von Bargen, CED Director
FISCAL NOTES:
Expenditure Required: Minimum Lot 2 $975,000 / Parcel A $37,000 = $1,012,000
Unencumbered Balance: $1,866,042 Pending 2017 Budget Approval - As of 1/1/2017
Funding Source: Reserve Fund, Snow Lot Purchase Account 350-8000-55000.580
RECOMMENDATION:
Authorize administration to negotiate the purchase of Lot 2, Sleepy Hollow Addition #5 (14.88 Acres) and Parcel A, USS 349 (18,655 ft²).
SUMMARY STATEMENT:
City Administration is requesting authorization to negotiate the purchase of two parcels of General Commercial zoned land for the purpose of using it to address proposed municipal development needs. Those proposed needs include 1) construction of a new Fire Station; 2) Construction of a large City/School/Agency Storage Facility; and 3) Snow Storage.
In anticipation of negotiating the purchase with the property owners, Administration had the two parcels appraised. Lot 2 (14.88 Acres), appraised at $975,000.Parcel A (18,655 ft²) appraised at $37,000. Copies of both appraisals are attached for Council review, as is a map showing both parcels. Parcel A was identified for purchase as it fronts the Richardson Highway in the northeast corner of area where Administration has proposed a new Fire Station be located.
As part of requesting authorization to negotiate the purchase of these properties, it is important for Administration to confirm Council’s intent with regard to items 1) Fire Station, 2) Storage Facility and, 3) Snow Storage. Confirmation of Council intent is important as different sizes of land acquisition will be necessary to accommodate the proposed uses.
1) Fire Station: a) Is Council ready to provide clear direction to build a new fire station? b) If the answer is yes, has Council determined a new location is preferable to rebuilding onsite? c) If the answer is no to ‘a’ above, what information is necessary for a decision to be made between build new or renovate? During the 2017 CIP budget discussion the Council authorized funding for a fire station (new) concept plan. Administration would like to confirm this. d) Does Council intend the concept plan to be for a new fire station? *Please note City staff has some additional information regarding previous renovation recommendations from McCool Carlson Green and current improvement recommendations to address mold, leaks and roof replacement at a minimum if it is desired by Council.
2) Storage Facility: There are known storage deficiencies that exist for City departments, the School District and agencies like PVMC, the Senior Center and the Museum. The extent of the storage needs are unknown, as is the possibility of decreasing storage requirements by taking a careful look at what should be kept and what can be surplused. During the 2017 CIP budget discussion the Council authorized funding for just this type of assessment. Prior to that assessment taking place is Council confident a new storage facility, separated from the existing maintenance and shop functions is required?
3) Snow Storage: The Council provided clear direction that at least a portion of this property should be appraised for purchase for snow storage. Previously, the City held an agreement with the property owners for annual storage use. As the owners want to sell the property they have declined to renew the snow storage agreement this year. This property is greatly needed for snow storage from Meals Avenue and from the grocery store parking lot. Public Works has requested 3-5 acres of this property for this purpose. At a minimum Administration would like to negotiate the purchase of a 5-acre portion of Lot 2 for snow removal.
Given known and unknowns, Administration is asking for authorization to negotiate the purchase of these properties (or a smaller portion thereof). To be clear, approval of the purchase of this land lies with the Council. The property owners will be advised Administration is negotiating to determine the minimum cost associated with the purchase and that the potential purchase by the City may only be approved by action of the Council.