Title
Resolution to Exercise a Right of First Refusal to Purchase 1146 South Maple Road for $260,000.00 (8 Votes Required)
Memorandum
The City has a recorded right of first refusal on property at 1146 South Maple Road. On May 3, 2019, the owner notified the City that they wished to sell the property for $260,000.00. The seller's offer includes the provision that the seller will cover up to $10,000.00 worth of repairs to the existing well and septic system, which appear to need repairs of unknown extent. [UPDATE 6-13-19: The seller's agent reports the following: the well has been repaired at a cost of $2,100, leaving $7,900 toward other repairs; the septic field is believed to be functional and may require no repairs, but will need to be tested again - the prior septic test was conducted while the yard was flooded from testing the new well pump, which may have yielded incorrect results]. Per the terms of the right of first refusal, the City has 60 days (until July 2) to decide whether to purchase the property on the same terms as the prospective buyer. The City obtained an appraisal that concluded the fair market value of the property was $250,000.00.
The property is approximately 1.15 acres adjacent to Hansen Nature Area and contains an existing house. City Parks staff reviewed the property and does not recommend purchasing it for park purposes. It scored 28/100, placing it in the 4th percentile of all applications, and in the lowest percentile of all "Natural Area" applications. The property adds no additional access to the Hansen Nature Area, and comes with the cost burden of maintaining or demolishing the house. Also, the eastern half of the property is not "natural area," as it has been developed with a house and residential lawn. If the property were acquired for another purpose and that purpose allowed splitting off the west half of the property to add to Hansen Nature Area, staff would bring that to PAC/LAC for consideration at that time.
The property ...
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