HomeMy WebLinkAboutOrdinance 4944 ORDINANCE NO. 4944
AN ORDINANCE WAIVING THE REQUIREMENTS OF
§34.27, CODE OF FAYETTEVILLE AND APPROVING A
REAL ESTATE SALES CONTRACT WITH HABITAT FOR
HUMANITY OF WASHINGTON COUNTY, INC. IN THE
AMOUNT OF $ 152,000 FOR THE PURCHASE OF EIGHT
ACRES SOUTH OF HUNTSVILLE ROAD AND SEVEN HILLS
TRANSITIONAL HOUSING; AND DESIGNATING A
PORTION OF THE REMAINING ACREAGE SOUTH AND
EAST OF THIS PARCEL AS PASSIVE GREENSPACE OR
PARKLAND
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby waives the
requirements of § 34.27, Code of Fayetteville, and approves a Real Estate Sales Contract with
Habitat For Humanity Of Washington County, Inc. in the amount of $ 152,000.00 for the
purchase of eight acres south of Huntsville Road and Seven Hills Transitional Housing. A copy
of the contract is attached hereto marked Exhibit "A" and made a part hereof The Engineering
and Planning Divisions may authorize credits to Habitat against the purchase price for the fair
value of storm water management features in excess of normal code requirements and
educational demonstration projects to spur innovation and increased efficiency for other
developers in the storm water management area.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby designates
a portion of the remaining acreage south and east of this parcel A passive greenspace or parkland
to be developed after consultation among Habitat for Humanity of Washington County, Inc. , the
City Parks Department and the Parks and Recreation Board. A portion of the consideration to
purchase the eight acres may include design and development of this parkland by Habitat and its
development partner.
Section 3 : That the City Council of the City of Fayetteville, Arkansas hereby authorizes
the Mayor and City Clerk to execute said contract with Habitat for Humanity of Washington
County, Inc. 000MI"' a,
``���•G�ERI0, 0 0
PASSED and APPROVED this 7h day of November, 2006. G�SY 0,e. Ci
APPROV D: ATTEST: = eFAYETTEVILLE ;
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By By: � � "1uuuuu0a
DAN COODY, Mayor SONDRA SMITH, City Clerk
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CITY ATTORNEY AGENDA REQUEST y�ely
AblyW 4r
FOR: COUNCIL MEETING OF NOVEMBER 7, 2006
FROM:
KIT WILLIAMS, CITY ATTORNEY
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
An Ordinance Waiving The Requirements Of §34.27, Code Of Fayetteville And Approving A
Real Estate Sales Contract With Habitat For. Humanity In The Amount Of $ 152,000 For The
Purchase Of Eight Acres South Of Huntsville Road And Seven Hills Transitional Housing; And
Designating A Portion Of The Remaining Acreage South And East Of This Parcel As Passive
Greenspace Or Parkland
APPROVED FOR AGENDA:
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City Attorney Date
Mayor Date
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Gary Dum s Date
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Tim Conklin Date
i
FAYETTEVILLE
THE CITY OF FAYFTTFVIIIE, ARKANSAS
KIT WILUAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATroRNEY LEGAL DEPARTMENT
DEPARTMENTAL CORRESPONDENCE
TO: Dan Coody, Mayor
City Council
CC : Tim Conklin, Planning & Development Management Director
Ron Petrie, City Engineer
Gary Dumas, Director of Operations
Paul Becker, Finance Director
FROM: Kit Williams, City Attome 4
DATE: October 16, 2006
RE: Sale of 8 acres of city-owned property south of Huntsville Road to
Habitat For Humanity
Mayor Coody and Tim Conklin have been working with Patsy Brewer
and Jim Culberson of Habitat For Humanity in an attempt to create an
innovatively designed, ecologically friendly, affordable housing
development in Fayetteville. The Fayetteville City Council has always been
a strong supporter of Habitat For Humanity and its work to provide truly
affordable housing for those willing to invest their own "sweat equity" in
their house.
The University of Arkansas Community Design Center is now
partnering with Habitat in an effort to provide a demonstration project for
innovative stormwater management techniques and creative home designs.
Aaron Gabriel is the Project Director and will be applying for grants to help
maintain the truly affordable nature of this Habitat development.
On January. 16, 2001 , the City of Fayetteville purchased about 19
acres of land south of Huntsville Road to save money the City would
otherwise need to spend on drainage and stormwater management problems.
This land had been appraised by Mark Risk for $ 158,000.00. The City
purchased it for $ 151 ,000.00.
As you remember, the City has entered into a 99 year lease with
Seven Hills Homeless Center for about 3 .5 acres of this property. That
transitional housing development is about to occur although the private drive
from Huntsville Road to the Seven Hills' property probably needs to be
upgraded to city street standards to access the remaining city property
(including the 2.2 acres leased to Sage House).
Although the City purchased this property for about $8,000.00 per
acre in 2001 , property values have increased dramatically in the ensuing five
and a half years. The City must legally obtain fair value for its taxpayers
from the sale of any of its property. However, the City Council is granted
wide discretion by the Court to determine this fair value.
We sold more desirable land to the Peace at Home Shelter for
$30,000.00 per acre a year or so ago. We also sold more valuable land south
of Persimmon to private developers for about $31 ,000.00 per acre on
October 18, 2005 . The parkland ordinance has set the city-wide money in
lieu of land cost at $40,000.00 per acre. However, we continue to sell
industrial parkland for only $20,000.00 per acre.
The U of A and Habitat need to be the contractual owners of this
property by early November in order to apply for a large grant to finance
their design work for this proposed development. We could not get a new
appraisal done nearly quickly enough to allow the U of A to apply for this
grant.
Since the City Council may reasonably determine the fair value of city
property without formal appraisal, I suggest the value of the eight (8) acres
sought by Habitat For Humanity should be set at $ 19,000.00 per acre.
Although this is considerably less than our recent sales to other entities and
the $40,000.00 average value agreed upon for money in lieu of dedicated
parkland, it is close to the price of the nearby industrial parkland and
constitutes an increase of 137% over what we paid per acre less than six
years ago. Computing out this figure makes the total sale price for eight
acres to be $ 152,000.00 which is $ 1 ,000.00 more than what the City paid for
all nineteen acres in 2001 . I believe this figure is very fair to Habitat and
will help them provide affordable housing while also ensuring our taxpayers
receive their legally required fair value for their property.
Attached is Ed Connell ' s memo of January 5, 2001 , recommending
the 19 acre purchase for $ 151 ,000.00. Mr. Connell notes this 19 acres could
have many valuable purposes for the City including:
" 1 . Future parkland . . . . 3 . Lands for affordable
residential development . . . (Habitat For Humanity)
or 5 . The City could sell the land . . . and recover
a portion or all of the cost . . . ."
All three of these anticipated purposes for this 19 acres could be
accomplished by this sale to Habitat and dedication of at least the most
southern remaining portion as a neighborhood park. This is in addition to
the Seven Hills and Sage House leased parcels for transitional housing and
an area east of the leased parcels for possible additional development or
parkland.
Attached is a map which shows the leased parcels. The eight acres
needed by Habitat all lies south of the Sage House leased parcel. Also
attached is the proposed ordinance and Real Estate Sales Contract with
Habitat For Humanity.
ORDINANCE NO.
AN ORDINANCE WAIVING THE REQUIREMENTS OF §34.27,
CODE OF FAYETTEVILLE AND APPROVING A REAL ESTATE
SALES CONTRACT WITH HABITAT FOR HUMANITY OF
WASHINGTON COUNTY, INC. IN THE AMOUNT OF $ 1529000
FOR THE PURCHASE OF EIGHT ACRES SOUTH OF HUNTSVILLE
ROAD AND SEVEN HILLS TRANSITIONAL HOUSING; AND
DESIGNATING A PORTION OF THE REMAINING ACREAGE SOUTH
AND EAST OF THIS PARCEL AS PASSIVE GREENSPACE OR PARKLAND
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby waives the
requirements of § 34.27, Code of Fayetteville, and approves a Real Estate Sales Contract with Habitat For
Humanity Of Washington County, Inc. in the amount of $ 152,000.00 for the purchase of eight acres south
of Huntsville Road and Seven Hills Transitional Housing. A copy of the contract is attached hereto
marked Exhibit "A" and made a part hereof. The Engineering and Planning Divisions may authorize
credits to Habitat against the purchase price for the fair value of storm water management features in
excess of normal code requirements and educational demonstration projects to spur innovation and
increased efficiency for other developers in the storm water management area.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby designates a portion
of the remaining acreage south and east of this parcel as passive greenspace or parkland to be developed
after consultation among Habitat For Humanity Of Washington County, Inc., the City Parks Department
and the Parks and Recreation Board. A portion of the consideration to purchase the eight acres may
include design and development of this parkland by Habitat and its development partner.
Section 3 : That the City Council of the City of Fayetteville, Arkansas hereby authorizes the
Mayor and City Clerk to execute said contract with Habitat For Humanity Of Washington County, Inc.
PASSED and APPROVED this 7"' day of November, 2006.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA SMITH, City Clerk
REAL ESTATE SALES CONTRACT
1 . The City of Fayetteville, Arkansas offers to sell and Habitat For Humanity Of Washington
County, Inc. (hereinafter Habitat For Humanity) offers to buy, subject to terms and conditions
set forth in this contract, approximately eight (8) acres more particularly described in Exhibit
" 1 " attached hereto and made a part hereof.
SEE ATTACHED EXHIBIT " 1 "
FOR PROPERTY DESCRIPTION
2. Purchase Price: Subject to the following conditions, Habitat For Humanity shall pay for the
property One Hundred Fifty-Two Thousand Dollars ($ 152,000.00). One Hundred Thousand
Dollars ($ 100,000.00) shall be due at closing. The remaining Fifty-Two Thousand Dollars
($52,000.00) shall be subject to credits authorized by the City Engineer and the Planning and
Development Management Director and shall be due prior to the issuance of the first building
permit for any lot developed upon this property.
3 . Conveyance will be made Habitat For Humanity by General Warranty Deed, except it shall be
subject to recorded instruments and easements, if any, which do not materially affect the value
of the property.
4. No title insurance shall be required of the City of Fayetteville for this sale and conveyance.
Habitat For Humanity may request and pay for title insurance at its option.
5 . The City of Fayetteville agrees to allow Habitat For Humanity, at Habitat For Humanity's
expense, to survey the property.
6. Taxes and special assessments due on or before closing shall be paid by the City of Fayetteville.
General taxes, ad valorem taxes and special assessments shall be prorated as of closing.
7. The closing date shall be within one hundred eighty ( 180) days after approval of this Real Estate
Contract by the City Council, which can be extended by agreement of the Mayor for an
additional sixty (60) days. If such date of closing falls on a weekend or holiday, it will be held
the following working day.
8. Possession of the property shall be delivered to Habitat For Humanity on the date of closing.
9. The City of Fayetteville hereby grants permission for Habitat For Humanity or its designees to
enter the above described property and improvements for the purpose of inspection and/or
surveying.
10. Risk of loss or damage to the property by fire or other casualty occurring up to the time of
closing is assumed by the City of Fayetteville.
11 . The City of Fayetteville shall disclose to Habitat For Humanity any and all environmental
hazards of which the City of Fayetteville has actual knowledge.
12. Habitat For Humanity Of Washington County, Inc. agrees to develop this parcel into at least
twenty (20) lots to be used for its affordable housing projects in conjunction with the University
of Arkansas Community Design Center. Habitat For Humanity further agrees to assist the U of
Ain applying for and complying with grants to make this project more affordable for the future
homeowners. Habitat For Humanity shall employ advanced ecological storm water
management development techniques and require its homeowners to properly maintain all such
,facilities pursuant to non-amendable restrictive covenants.
133 Habitat For Humanity Of Washington County, Inc. agrees to develop this eight acre parcel as a
Planned Zoning District so that the Planning Commission and City Council can review and
approve the design of the subdivision and the proposed innovative designs of the houses.
14. The City of Fayetteville and Habitat For Humanity agree that the benefits to the City of
Fayetteville of the advanced stormwater management techniques employed on this site (both for
control of stormwater and drainage and as demonstration projects for the benefit and education
of other developers) should form a portion of the compensation for this purchase and designate
the City Engineer and the Planning and Development Management Director to ascertain and
determine the fair market value of these services which shall reduce the amount owed on the
purchase price of this eight acre parcel.
15 . This agreement shall be governed by the laws of the State of Arkansas.
16. This agreement, when executed by both Habitat For Humanity and the City of Fayetteville shall
contain the entire understanding and agreement of the parties with respect to the matters referred
to herein and shall supersede all price or contemporaneous agreements, representations and
understanding with respect to such matters, and no oral representations or statements shall be
considered a part hereof.
CITY OF FAYETTEVILLE HABITAT FOR HUMANITY OF
A Municipal Corporation WASHINGTON COUNTY, INC,
By: 4t By:
DA O PATSY BR ER
Mayor Executive Director
Date: I / Date: /0 �Z5 D
Attest: G/� Agent or Witness:
eM U✓ Af)AA 11Al C
Sondra Smith, City Clerk
Date: l i' / I �,Dl� Date:
2
ACKNOWLEDGMENT
STATE OF ARKANSAS
COUNTY OF WASHINGTON
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and
acting Notary Public within and for said County and State, personally appeared Patsy Brewer to me
well known as the person who executed the foregoing document, and who stated and acknowledged that
she is the Executive Director of Habitat For Humanity Of Washington County, Inc. and is duly
authorized in her respective capacity to execute the foregoing instrument for and in the name and behalf
of the corporation, and further stated and acknowledged that she had so signed, executed and delivered
said instrument for the consideration, uses and purposes therein mentioned and set forth.
WITNESS my hand and seal on this 90 kday of October, 2006.
P ,W'N�B
Q . . . Rq
Notary Public
ss • c My Commission Co80 00
nmmission Expires: � �i %'Q�;�
ACKNOWLEDGMENT
STATE OF ARKANSAS
COUNTY OF WASHINGTON
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and
acting Notary Public within and for said County and State, personally appeared Dan Coody and Sondra
Smith, to me well known as the persons who executed the foregoing document, and who stated and
acknowledged that they are the Mayor and City Clerk of the City of Fayetteville, Arkansas, a
municipal corporation, and are duly authorized in their respective capacities to execute the foregoing
instrument for and in the name and behalf of said municipal corporation, and further stated and
acknowledged that they had so signed, executed and delivered said instrument for the consideration,
uses and purposes therein mentioned and set forth.
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WITNESS my hand and seal on this S day f Octo er, 2006.
Notary Public IVU,
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FA�'ET �E" LLE
ME CITY OF FAYMEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
DATE: January 5, 2001
TO: Fayetteville City Council
THRU: Dan Coody, Mayor
John Me ' , Alm ms' trat e ces Dkedor.
Don Bunn, ' a Public Works Director
Jim Beavers, City Engineer
FROM: Ed Connell, Land Agent
RE: 18.88 Acre Barker Property Purchase
Huntsville Road, Fayetteville
Pt. E'/s-NW'/4-22-16-30
Over the past two-three years, the city has undertaken a major drainage project for controlling storm water
from the SE side of Mt. Sequoyah, between Huntsville Road and 15'" Street. The project included
drainage resolution across portions of properties owned by William H. Barker Oils heirs at the current
time) and Charles Combs. The initial project envisioned open ditch over the northern portion of the
project and pipe along the southern portion. Anticipated cost of the initial project was approximately i
$180,000 to $200,000.
While Mr. Combs was willing and did provide the city with easements to construct the system along his
property, the heirs of William H. Barker were not satisfied with the plans to pull open ditch along a major
portion of their property. They further claimed that the city's approval of a subdivision development to the
east discharged additional waters on their property which caused irreparable damages in the southern part
of that property. They claim that they were never notified, until after the fact, that a subdivision (Cedar
Point S/D) was being considered adjacent to their property. They fiuther claim that had they known of the
development, they would have made their presence known to ensure adequate and proper handling of
storm drainage. They blame the city for their property damage and have, on occasion, threatened to file
suit. Their solution was to run pipe 36"- 48" all the way north to the outlet pipe of the subdivision. It is
estimated that to do the project as they desired would cost an additional $200,000. E;
This project made little or no progress overthe next year as the city was unwilling to commit to the
additional expenditure and the Barker heirs were unwilling to provide the city with casements. When Mr.
Barker passed in 1999, the heirs decided to sell the property (18.88 acres). An offer and acceptance was
signed with a third parry for $151,000 or $8,000/ acre. When this transaction did not materialize to a final
stage, the property came back on the market. As noted from the above discussion, the additional cost of
the drainage project exceeded the cost of the land and it was prudent that the city consider the purchase
thereof.
Fayetteville City Council
Barker Property Purchase
Agenda Memo
Page 2 of 2
The city can purchase the almost 19 acres for less money than would be spent to install the piping along the
east line of this property. By purchasing the property , the city can implement the open ditch system that
the city engineers believe adequate for this drainage system now or in the future and at the same time
eliminate the possibility of a law suit. If the property is sold to a third party, that party is going to expect
the drainage situation to be resolved by the city just as if the Barker heirs still own same. The city has
offered $151 ,000 for the property and the owners have accepted this offer (see attached O & A contract).
The city has had the property appraised by Mark Risk: $158,000 was his estimated market value. This
represents almost 19 acres of reasonable to good land within the city limits, with water and sewer available,
for a value of less than $10,000 per acre, which is a good deal for almost anything within the city limits.
If the city were to acquire the land;
(1) The city could eliminate the need to spend about $200,000 or ''/z the cost of the drainage
project.
(2) The drainage project itself could be forestalled to some future date when city departments
could be in a position to do the work itself at a much lower cost to the city.
(3) Once the project is completed, there would be a considerable savings in the cost of the
project and the city would have 19 acres of prime land for any and all kinds of purposes,
i.e., 1 . Future park land for soccer or ball fields.
2. Land for growing trees,
3. Lands for affordable residential development on the north side of said
property (Habitat for Humanity).
4. Lands for future city divisions locations,
or
5. The city could sell the land within a couple of years and recover a portion or
all of the cost of the drainage project.
(4). This property is zoned R-1 residential and has access to/from Huntsville Road. Parks &
Recreation have considered the possible purchase of the American Legion baseball field off
of Curtis Ave. This 5 acre tract, while being used for baseball purposes, could also provide
an access route to the south part of the subject property. This other acquisition can be
incorporated as required and/or finances are available.
It is the recommendation of the staff that it makes sense for the city to take advantage and acquire the
subject property at this time.
