HomeMy WebLinkAbout1264 ResolutionRESOLUTION NO. 1264
A RESOLUTION relating to the sale of city owned real property.
WHEREAS, the city desires to sell Lots 3, 4, and 5, Block 13,
Pasco Addition, as recorded in Volume "B" of Plats, page 32A, records
of the Franklin County Auditor;
WHEREAS, the lots have been appraised at thirty-three thousand
six hundred & 00/100 ($33,600.00) dollars; and
WHEREAS, the city has received an offer of thirty thousand &
00/100 ($30,000.00) dollars from Laborers' International Union of
North America; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
That the city sell the above-described lots for less than the
appraised value for the following reasons:
1. The Laborers' International Union of North America as
purchaser has agreed to improve a portion of the lots for parking and
to reserve twenty (20) spaces for city employee parking for ten years,
2. The union has plans and an apparent ability to improve
the lots in the immediate future, and
3. It would be in the public interest and promote the general
health and welfare of the citizens of Pasco.
PASSED by the City Council of the City of Pasco this 18th day
of June 1979.
AT TEAS T:
Chet Bailie, mayor
/g've'lyn Werlls, City Clerk
APPROVED AS TO FORM:
1A 1JA_C'—
Dennis
J. De eli , ty Attorney
I
AGENDA REPORT NO. 27
FOR:' City Council DATE
Lee Kraft, City Manager
SUBJECT: SALE OF CITY -OWNED LOTS.
une 7, 1979
I. REFERENCE(S): (List only those attached)
EXHIBIT "A": Memorandum from Webster Jackson, Administrative Assistant, dated
May 30, 1979.
EXHIBIT "B": Letter from Harry Moore, dated May 29, 1979.
EXHIBIT "C": Letter from'City Manager to Mr. Millsaps, dated June 1, 1979.
EXHIBIT "D": Letter from Paul Millsaps, dated June 6, 1979. EXHIBIT E: Letter from
II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATION: Paul Millsaps, 6/7/79.
Staff recommends that, pursuant to PMC 2.46.030 (3) and (4) and PMC 2.46.035, the
Council, by resolution declaring an emergency, authorize the negotiated sale of
Lots 3, 4 and 5 of Pasco Addition, Block 13, to Local No. 348, Laborers' International
Union of North America.
III. HISTORY AND FACTS BRIEF: The City owns 150 ft, of frontage on Clark Street, west of
the Labor Temple, which comprises three 50' x 140' lots, for a total of 21,000 sq.ft. of
area. The Labor Temple is expanding their building and, by doing so, will eliminate
their present parking lot. To comply with city code parking requirements, to get a
building permit, they either have to lease or purchase adjacent land (within one block) in
a sufficient amount. to meet -parking requirements; hence, their interest in dealing with the
City to lease or buy some of our land to the west. See Exhibit "F" for the site plan of
the City lots.
IV. DISCUSSION & ALTERNATIVE'S: You will want to review my letter to the Local, which is
identified as Exhibit "C". In this letter, I explained the options which I felt were
feasible. The rental rate and the sales price I mentioned in this letter were based on
research which Webster Jackson had done at my direction. Mr. Jackson's letter and the
letter from Harry Moore, are attached as Exhibits "A" and "B". • This preliminary research
indicated the lots should rent for $100 a month each and indicated the sales value. of the
land to be worth $1.00 a sq.ft., or $7,000 per lot.
The Union, through Mr. Millsaps in the first instance, informed me by letter that they
were not interested in a long-term lease, but did instead want to buy one or all three of
the city lots. After talking to Mr. Millsaps again, the Union has changed its position
and now wants to buy all three city lots for $30,000 total, in return for which, at the time
they expand their building, they will make all three lots into a paved parking lot and, for
a period of five years thereafter will furnish 16 free parking stalls for City Hall staff.
V. OTHER COMMENTS: City code permits a negotiated sale in lieu of a competitive bid sale,
if the Council so authorizes by resolution. The code also requires that at least one
appraisal by an independent, qualified appraiser be made after the adoption of the
resolution. Perhaps the comments on appraised worth offered by Mr. Moore (see
Exhibit "B") would not be acceptable under the specifics of the city code. If that is so,
we will have to have another appraisal made by an M.A.I. qualified appraiser after the
resolution is adopted.
The resolution will be ready to hand out at the Workshop meeting.
RESOLUTION NO.
A RESOLUTION relating to the sale of city owned real property.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
That members of the city staff are hereby authorized to enter
into negotiations for the sale of Lots 3, 4, and 5, Block 13, Pasco
Addition, as recorded in Volume "B" of plats, page 32A, records of
the Franklin County Auditor, for the reasons that the city has no
present need of or use for the lots, that there is an interested
buyer who needs to purchase the lots within a.very short time and
that a negotiated sale would be in the best interest of the City
of Pasco. The council further resolves that one appraisal of the lots
be obtained from an independent person familiar with real estate
values in the City of Pasco. In determining the appraised value,
the appraiser shall take into consideration the use the buyer intends
to make of the properties.
PASSED by the City Council of the City of Pasco this day
of , 1-979.
Chet Bailie, .Mayor
ATTEST:
Evelyn Wells, City Clerk
APPROVED AS TO FORM:
Dennis J. De Felice, City Attorney
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MEMORANDUM
TO: Lee Kraft, City Manager May 30, 1979
FROM: Webster Jackson, Administrative Assistant
SUBJECT: VALUE OF LEASE OF CITY LOTS.
In response to your request for me to do research into what value of lease
consideration should be placed on the two city -owned lots on Clark Street,
I submit the following information:
1 . Letter from Harry Moore Realty, Inc. , with a copy of a recent sale.
2. Copies of recent sales I obtained from title company
� G
On a long-term lease, I think the City should include an escalator clause
to cover cost of living increases. If the City were to consider selling
the lots, based on comparable sales, the minimum price should be $7,000.00
per lot.
Hope this information helps.
WU t
attachments
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Marry f(. Moore Realty, Inc.
5007 W. CLEARWATER AVE.
KENNEWICK, WASHINGTON 99336
509/783-1351
May 29, 1979
Mr. Webster. Jackson
Community Development Coordinator
City of Pasco
Pasco, WA 99301
Dear Mr. Jackson:
Reference is made t.of: Lot 2 & 3 on Clark Street
West of the Labor Temple.
I am enclosi-n.r!--.copies of sale on the most recent
land near thd.s property.
Also you have report on the land of New Era Furniture
bought in 1976 at over $6.00 per sq. ft.
This sale on Lewis Street is 90 ft. x 140 .ft. 40 ft.
is a vacate lot. '50 ft. is an old burnt out building that is
going to be remodeled for a cafe. My calculations shwa the land
to be worth $1.00 a sq. ft.
My suggestions and opinions to guide those interested
in the above Lots: $70.00 per month plus $30.00 on investment
for a total of $100.00 per month per lot.
Sincerely,
Harry H. Moore
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CITY MANAGER
1'. O. BOX 293 412 WEST CLARK PASCO, WASHINGTON 99301
June 1, 1979.
Mr. Paul Mill,saps'
Business Agent
Laborers' International Union of North America
Local 348
204 W. Clark
Pasco, Washington 99301,
Dear Paul:
As we discussed on the phone, here are the options which appear to be feasible
so far as that one city lot is concerned:
Option I - Straight Out Lease. Annual rental rate of $1,200 ($100 per month),
adjusted each year on or about July .1st, in accordance with, the. percent of
change in the U.S. - All Items CPI. The term of the lease would have to be at
least 40 years, which would be the contemplated life of the building.
Option II - Sale of Lot to Union.- Sell the one lot (50' x 140') to the Union for
$8,000.
Option III - Modified Lease. Lease the desired lot to the Union for a term of
4.0 years; however, the first eight years of lease payments would be excused,
in return for which., the Union at the time of the building of your addition, would
improve the other two adjacent city lots to city code parking lot standards, and
would do so at Union expense. Beginning the ninth year of the lease, the
parties would negotiate the future lease payments on the basis of adjacent
property values existing at that time. Whatever this figure might be, it would
be adjusted annually for inflation, on or about July 1st, in accordance with the
percent of change in the U'S - All Items CFI, until the expiration of the 40 year
term.
As I said on the phone, staff prefers Option IlFand would be inclined to recommend
this one to the Council.
Also, for the information of your Board, our monetary terms for the lease consideration
of $100 per month, was based on some research we have done with several local
realtors that know property values in the vicinity of the Labor Temple and who have
knowledge of recent sales of property in the general area. The same applies to the
$8,000 sales price for the lot.
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Lastly, I hope you can accept something on the order of Optionor" because
I believe this arrangement would work to our mutual benefit. The extra parking
spaces in the additional lots would be available for your patrons in the evenings
and weekends and, to some limited extent, during working hours on weekdays.
Paul, I plan to have this matter on the June 11 Workshop of the City Council,
because I know you are anxious to get your construction going. Please review
the options and let us know where you're coming from, no later than Wednesday,
June 6.
Sincerely,
Leland F . Kraft
LFK:pt City Manager
cc: Webster Jackson, Administrative Assistant
Jim Ajax, Director of Community Development
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AFFILIATED WITH
EAS.TERN WASHINGTON DISTRICT COUNCIL OF LABORERS
BUILDING AND CONSTRUCTION TRADES COUNCIL
CENTRAL LABOR COUNCIL
AFL CIO
F'Ngro PHONE 547-7553
204 WEST CLARK
.11 P. O. BOX 546
g PASCO. WASHINGTON
�cf2 99301
g �^" 0M. 1
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA
LOCAL 348
June 6, 1979
City cf Pasco
Leland F. Kraft, City Manager
412 West Clark
Pasco, Washington 99301
Dear Lee:
I received your letter of proposals on a parking
lot lease agreement.
Having read this and presented to the Temple
Association, it was not acceptable to them.
The following proposals were suggested and asked
to be presented.to the council.
Option I. Sale of lot. Laborers will offer $8,000
for a lot to satisy parking code on building
expansion.
Option II. Sale of three lots: Laborers will offer
$30,000 for the three lots.
We would like to start construction on the expansion
of our building at 204 W. Clark Street no later
than June 14th and would appreciate your prompt
action on this urgent matter.
Sincerely yours,
Paul Millsaps
Business Manager
PM/pjp
LIUNA 348
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AFFILIATEDWITHPHONE 547-7553
+ FASWERN WASHINGTON DISTRICT COUNCIL OF LABORERS �Q,9 �•^ 204 WEST C LA R K
BUILDING AND CONSTRUCTION TRADES COUNCIL WQ' P. 0. BOX 546
CENTRAL LABOR COUNCIL Q ; PASCO. WASHINGTON
AFL • CIO J
a� A� 99301
~oru,
1
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA
LOCAL 348
June 7, 1979
City of Pasco
Leland F. Kraft, City Manager
412 West Clark
Pasco, Washington 99301
Dear Lee:
As per our conversation of June 6., 1979, I contacted
our Board and we now submit the following additional
proposal;
Laborers Local No. 348 will furnish free parking to
the City Hall staff, consisting of sixteen spaces on
the western side of the lots for a period of five
years.
These spaces will be constructed as per city codes
or better, greatly.improving area involved.
Should you or staff have any further questions, please
feel free to contact me.
Sincerely yours,
Paul Millsaps
Secretary Treasurer
BUSINESS P1ANAGER LOCAL NO. 348
PM/pjp
LIUNA 348
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