HomeMy WebLinkAbout1291 ResolutionRESOLUTION NO. 1291
A RESOLUTION setting forth council reasons for selling specific real
property (Red Lion) for less than appraised value.
WHEREAS, it is in the best interests of the City of Pasco and its
planned redevelopment program at the Pasco Municipal Golf Course to sell
certain described real property to Thunderbird Red Lion Motor Inns; and
WHEREAS,_Thunderbird Red Lion Motor Inns currently occupies
approximately\7.8iacres of land by lea:sing said landfrom the City of
Pasco and is d'esro.us of purchasing said land from the City of Pasco
along with an additional 8.2 acres; and
WHEREAS, Resolution No. 1263, approved by the City Council on
June 18, 197.9,, authorized the negotiated sale of the above property
after a proper appraisal by an independent qualified appraiser; and
WHEREAS, Gail H. Halliday, a qualified M.A.I. rated,appraiser from
Redmond, Washington, was engaged to make said appraisal and did make and
furnish the City of Pasco an appraisal report on the aggregate value of
the leased fee value of the existing Red Lion site of 7.8 acres and the
additional adjoining 8.2 acres; and
WHEREAS, pursuant to a letter of agreement between Thunderbird
Red Lion Motor Inns and the City of Pasco, the Thunderbird Red Lion
Motor Inns retained an independent qualified appraiser, Thomas A.
Miller of Property Counsellors, Inc., Portland, Oregon, a qualified
M.A.I. rated appraiser, who did make and furnish to the parties a
second appraisal report on the previously described properties; and
WHEREAS, Gail H. Halliday, the City retained appraiser, set an
aggregate value o.f $1,293.613 on the property, and Thomas A. Miller, the
Thunderbird Red Lion Motor Inns retained appraiser, set an aggregate
value of $841.201 for said property; and
WHEREAS, a copy of each the cited appraisal reports is on file with
the City Clerk for public inspection during working hours; and
WHEREAS, the City Council, for good and sufficient reasons, desires
to sell the described real property for a sum of $800,000, this being
less than either of the independent appraised values and, pursuant to
the requirements of P..M.C. 2.46.035 entitled "Negotiated Sales," the
Council sets forth its reasons for the negotiated sale; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO:
Section 1. That it would be beneficial to the City of Pasco to
enter into a contract of sale of $800,000 because the overall Pasco
Golf Course Redevelopment Master Plan is largely dependent upon the
development of a private sector convention hotel to stimulate interest
in the contemplated redevelopment project, that it provides evidence
of the intent and ability of the City of Pasco to undertake the entire
project, and that it will stimulate sales and development activity in
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the officer/commercial, retail, sports center and housing sectors of
the overall redevelopment plan.
Section 2. In recognition that one of the three fundamental
elements of a multi-purpose center is a major convention hotel with
meeting, banquet and exhibition space; the sale of the described
property at the indicated price provides the City of Pasco and the
greater Pasco area a unique opportunity to have all of these facilities
provided at no expense to the City of Pasco, but actually creates money
for the City of Pasco through additional property taxes, additional
motel/hotel taxes, additional golf course play, and enhances development
in and around the subject property.
Section 3. That Leland and Hobson, Economic Consultants retained
by the City of Pasco, recommended that the City accept and approve the
negotiated price of $800,000 in return for specific performance
requirements which have been developed and are a part of the proposed
contract of sale.
Section 4. That the performance requirements that are a part of
the contract of sale guarantees to the City of Pasco that Thunderbird
Red Lion Motor Inns will develop the following:
(a) Convention facilities to seat in adequate and comfortable
round -table format, at least 1,100 people, together with
necessary meeting rooms on the premises to properly service
conventions.
(b) To add, in the initial phase of construction, 125 motel rooms,
making a total 279 rooms and, upon reaching an 85 percent
occupancy level, to add additional motel rooms to meet the
demand.
(c) To provide dining facilities to seat at least 125 people;
lounge facilities to seat at least 200 people; and coffee
shop facilities to seat at least 125 people.
(d) To begin construction within six months of the approval of the
contract of sale and to complete construction by June 1, 1981.
(e) All development will be in harmony with the City of Pasco
golf course redevelopment plan.
Section 5. That what appears to be a loss in front-end cash by
selling at less than appraised value will, under normal market conditions
and with sound management supervision, be made up manyfold in increased
taxes, creation of a larger payroll, and through the stimulation of
other development.
Section 6. The City Council finds that the contemplated negotiated
sale below appraised value is in the public interest of the City of
Pasco and the general welfare of its citizens because of the positive
impact the Thunderbird Red Lion expansion and improvement program will
brina.
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Of �ED by the City Council of the City of Pasco this day
���„,/ , 1979.
Chet Bailie, Mayor
AT
E, City Clerk
APPVED AS TO FORM:
r� 0
Dennis J. De Fe %ice, 'City Attorney