HomeMy WebLinkAbout10-19-1979 MinutesSPECIAL MEETING
PASCO CITY COUNCIL
SPECIAL MEETING
CALL TO ORDER:
OCTOBER 19. 1979
Meeting called to order at 7:30 P.M. by the Honorable J.C. Bailie, Mayor.
ROLL CALL:
By City Manager. Councilmen present were: S.K. Adams, J.C. Bailie, Charles
Grigg, Ira Schmidt, Gary Clark and E.A. Snider. Councilman Wilkins was absent
from the meeting (out•of town - excused). Also present ere: Leland F. Kraft;`
City Manager; Dennis De Felice, City Attorney; Webster Jackson, Administrative
Assistant and Ed Hendler, Convention Center Coordinator.
MANAGER'S STATEMENT:
"The City Code requires that we make public the appraisal on the property
that you intend to sell by negotiated sale. I did want to advise the council
that the original City appraisal report prepared by Thunderbird Red Lion Motor
Inns will be on file in the Clerk's office and is available for inspection during
working hours. Obviously, we will not be able to let it out of City Hall. For
the record, I think we should go through the appraisals briefly - what the City's
appraisal was. Both the appraisals were prepared by M.A.I. rated appraisers
the City's appraiser was Gale Halliday and the Thunderbird Red Lion's appraiser
was Mr. Miller of Property Counselors, Inc. in Portland.
The City appraisal indicated that the total value of leasehold interest, which
is 7.8761 acres was worth $232,000 and the total property was worth $1,292,613.00.
Average that on the basis of square feet for the 7.8761 acres, it figures out to
$1.86 per square foot.
Mr. Miller, who did the appraisal for Thunderbird Red Lion, divided the property
up to 16 acres in three parcels, present leasehold for -the 7.88 acres and a Parcel
B and C. When one adds the aggregate to that, Mr. Miller put an appraisal value
$841,201.00. Again, on an average square foot basis, including sub -total of all
the parcels, (the full 16 acres), it averages $1.21 per square foot as opposed to
$1.86 per square foot that the City's retained appraiser had provided. If you
analyze the sale in terms of the $800,000.00 sales price and if you focus first on
the 7.876 acres at $232,000.00 which is what the Contract sale proposes, that
figures out about 67!6 ', per square foot. An additional 8.2 acres at $568,000
computes to $1.59 per square foot. Averaging those two (leasehold + additional
acreage) figures to a little over $1.133 per square foot.
Again, I want to state that the appraisal reports will be on file with the City -
Clerk and will be available for public inspection.'' The Pasco Municipal Code does
provide that if council, by its policy, intends to sell the land by negotiated sale
(dompetitive bid), that you first must pass a Resolution to permit negotiated sale.
The City Council did this last June by virtue of adopting Reso.lutionNo. 1263, and.
that particUlarl.Rdsolution did indicate the City's policy that the land could be
sold to Thunderbird Red Lion on the basis of negotiated sale. The Resolution which
is on the agenda here and is required by Pasco Municipal Code says, "if the Council,
sells by negotiated sale and if the land is proposed to be sold below the indicated
appraisal value, the Council must indicate why it is' -selling the land. This.
Resolution proposes to serve that purpose."
RESOLUTION NO. 1291:
A RESOLUTION SETTING FORTH COUNCIL REASONS FOR SELLING SPECIFIC
REAL PROPERTY (Red Lion) FOR LESS THAN APPRAISED VALUE.
Resolution No. 1291 was read by title only. Mr. Adams moved that Resolution No.
1291 be adopted. Seconded by Mr. Schmidt. Motion carried by roll call vote
of six (6).
SPECIAL MEETING
PASCO CITY COUNCIL
SPECIAL MEETING
RESOLUTIONS - Continued:
RESOLUTION NO. 1292:
OCTOBER 19, 1979
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
CONTRACT OF SALE OF APPROXIMATELY SIXTEEN (16) ACRES OF LAND
PRESENTLY OWNED BY THE CITY OF PASCO WITH REMSCO, INC., AND
SPINCO, INC., A JOINT VENTURE, d/b/a RED LION MOTOR INN.
Resolution No. 1292 was read by title only. Mr. Clark moved that Resolution
No. 1292 be adopted. Seconded by Mr. Snider. Motion carried by roll call
vote of six (6).
Mr. Snider felt the record should show reasoning of the council behind the
two Resolutions. This is the first step in the development of the Golf Course
area. It is a necessary step because you can't take step number two without
completing number one. Even though the property is being sold under the appraised
figure, according to the City's economic advisor - this is a good offer as in the
long run, we will reap benefits more than loss of revenue at this time.
Mr. Adams concurred the City had been a long time getting where we are today,
and he, personally, was glad to get this "vehicle in gear."
ADJOURNMENT:
Meeting adjourned at 7:45 P.M.
PASSED and APPROVED this 6
A
J.C. "Chet" Bailie, Mayor
day of 1979.
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