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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 -2 - 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. -3 - 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