Title
Resolution to Approve the Purchase of Real Property Located at 302 Mulholland Ave in Fee Title for $108,300.00 Plus Costs Not to Exceed $20,000.00 and to Appropriate Funding from the Stormwater Fund ($128,300.00) (8 Votes Required)
Memorandum
Below for your review and action is a resolution to approve the purchase of the vacant property located at 302 Mulholland Ave, Ann Arbor (approximately 6,777 square feet or 0.156 acres), Tax Parcel 09-09-29-209-033 in fee title for $108,300.00 from the Seller, Mitchell Newberry on the terms set forth in the proposed Agreement of Purchase and Sale (see attached).
The parcel in question is currently vacant and is unbuildable due its location in the floodway of the Murray-Washington Drain (a branch of Allen Creek). It is well-known that this area floods frequently. The 2015 Stormwater Model Calibration and Analysis Project identified that the storm system on Mulholland surcharges during a 50% annual chance (2-year) storm event, and recommended stormwater improvements for the area. Based on those recommendations a project was put into the City's Capital Improvement Plan (CIP). If purchased, the parcel could be used for stormwater design options, such as underground storage, for the upcoming CIP Project, [UT-ST-18-04 Mulholland Ave. SWMM Area Stormwater Improvements], which the design phase is identified to start in FY23.
In compliance with the requirements of Code Section 1:321, the City obtained an appraisal of the Property in April 2022 which the owner rejected and obtained two more independent appraisals. The appraisal from Affinity Valuation Group, LLC was agreed to be the most reasonable representation of the Property's fair market value at $108,300.
Budget/Fiscal Impact: Funds for this property purchase are available in the Stormwater Fund, within the budget established for the CIP project UT-ST-18-04 Mulholland Ave. SWMM Area Stormwater Improvements.
Funding for the purchase will include the purchase pri...
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