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HomeMy WebLinkAbout1989-09-13 Minutes309 MINUTES OF A SPECIAL MEETING OF THE CITY BOARD OF DIRECTORS 09.1 A special meeting of the Fayetteville City Board of Directors was held on Wednesday, September 13, 1989 at 8:30 a.m. in Room 326 of the City Administration Building, 113 W. Mountain Street, Fayetteville, Arkansas. PRESENT: Assistant Mayor Fred Vorsanger; Directors Mike Green, Ernest Lancaster, Russ Kelley, Paul Marinoni, Jr. and Shell Spivey; Assistant City Manager Scott Linebaugh, City Clerk Suzanne McWethy; member of the press, staff and audience. ABSENT: Mayor Martin CALL TO ORDER .09.2 In the absence of the Mayor, the meeting was called to order by Assistant Mayor Vorsanger, with six Directors being present. ARTS CENTER PROPERTY ;09.3 The Board considered a resolution authorizing the City to enter into condemnation proceedings for property located between Dickson and Springs Streets, between Gregg and West Avenues; and approval of the budget adjustment. Assistant City Manager Linebaugh said this would authorize the City to purchase 3.19 acres of land west of the site of the Walton Arts Center for parking lot construction. 509.4 Linebaugh pointed out that the Board, on September 5, had awarded the,_ contract for construction of the parking lot. He said the staff had been trying to purchase the land and yesterday was able to reach settlement on the McBride and Sugg properties. He said they had been unable to reach a settlement on the Pearson/Carney property, and will have to condemn that property. He said the other property owned by the Dickson Street Central Business Improvement District would be purchased for the amount paid by the District when they purchased it from the Railroad 309.5 Linebaugh asked for authorization to purchase the property for an amount up to 10% above appraisal value, and asked for authorization to initiate condemnation proceedings on any property which cannot be settled. 309.6 Linebaugh said funds are available from Arts Center bonds for the purchases. In answer to a question from Kelley, Linebaugh said the staff was requesting authorization for a total expenditure of $208,000 for all the parcels. He said appraisals were on hand for all the property with the exception of the Sugg property. In answer to a question from Green, Linebaugh said the $208,000 figure was an estimate. He said the Board would be authorizing the staff to offer up to 10% above appraised value ($73,500) for the McBride September 13, 1989 property and 10% above appraised value ($60,000) for the Pearson/Carney property. He said it was learned yesterday that the Sugg property can be purchased for $30,000. Director Vorsanger said he had received complaints regarding the unsightly condition of Parcel A (owned by Pearson/Carney). He remarked that Pearson would never clean it up and the City needed the property anyway. In answer to a question from Green, Linebaugh said the reason for the special Board meeting was that the staff felt it important to go ahead and settle on the property so that construction can begin as soon as possible. Public Works Director Kelly told the Board we could proceed with construction without possession of Tracts A and B (Pearson/Carney tracts.) It was moved by Lanraster and seconded by Kelley to approve the resolution. Upon roll call, the motion passed, 6-0, Director Martin being absent. RESOLUTION NO. 81B-89AppEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK ROCK STREET PROPERTY The Board considered a request from the staff for authorization to bid at auction on property located at 101 W. Rock Street, in accordance with a plan to purchase land in close proximity to the City Administration building. Director Vorsanger said Linebaugh said the -last time this property was up for auction the City considered bidding on it but did not do so. Vorsanger said he thought it was reasonably priced. Linebaugh said the staff had looked at the building and an appraisal was received late yesterday appraising the land and building at $60,500. He said possible uses were office spare, water meter shop and office space, or renting to the current tenant. He said the City was currently negotiating the possible purchase of the Systematics building. 310 310.1 310.2 310.3 310.4 310.5 Linebaugh suggested that, if approved, the City's Land Agent attend the 310.6 auction and place a bid on the property up to its appraised value Vorsanger said the last time the property was up for auction it was listed for $65,000. He said at a little over 5,000 square feet, the cost of the building comes to a little over $12 per square foot, and land would be included 310.7 Marinoni said whether or not the City has an immediate need for the 310.8 property, he thought we would be pleased we had purchased it. Linebaugh said the City owns property right next to this property, where the 310.9 City's traffic operations are housed 311 September 13, 1989 311.1 Director Lancaster said he thought it was a worthwhile idea. 311.2 Linebaugh said funds to purchase the property would be taken from "pay as you go" sales tax. He said $700,000 is allocated to increase Police and Administration office space. He said no budget adjustment would be required. 311.3 Linebaugh explained that the owner of the building couldn't make the payments and the Small Business Administration took it over and, at the first auction, there were no bidders. He, said the reason for the special session was because the auction will be held on Tuesday morning. 311.4 Director Green expressed concern about putting money into something we don't have an immediate need for, when we have tremendous financial problems. He said, if we don't use the building for,the next ten years, we would still have to maintain the property. He said he would be hesitant to try to pay market or above market value for the property. 311.5 Linebaugh said we didn't know right now whether we would be able to purchase the Systematics building and, if we don't we'll desperately need space for police officers and some administration offices. Linebaugh said the building currently rents for $800 per month. 311.6 Spivey said that although he was conscious of the City's financial problems he thought we might regret it if we don't try to purchase the property. 311.7 Linebaugh said the City is presently having an appraisal done on the Systematics building. He said a recommendation would probably come before the Board in the next 30 to 60 days 311.8 Green said if we moved in to the Systematics building and filled another office building this would be a growth rate of government that far exceeds the growth rate of Northwest Arkansas and Fayetteville. He said he was hesitant to consider that our government is going to grow that fast 311.9 Vorsanger said he thought the purchase of the building was good long range planning. 311.10 Public Works Director Bob Kelly said that in the capital improvements plan there will be a need to consolidate public works divisions in a maintenance center. He said that would involve selling off some property. He said the meter division will need space in excess of 5,000 square feet. Linebaugh said they had considered moving the meter repair division downtown. Green questioned whether the meter operations needed to be in proximity to City Hall, noting this was expensive real estate for that purpose. Linebaugh said that division deals with the Business Office located in City Hall. 311.11 It was moved by Kelley and seconded by Marinoni to authorize the City to bid at auction on the property, in an amount not to exceed the appraised value. Upon roll call, the motion passed, 6-0, Director Martin being absent. 312 September 13, 1989 ADJOURNMENT There being no further business before the Board, the meeting adjourned at about 9:05 a.m. ri/4, 440c AUCTION 9-/3 -g9 • BY AUTHORITY OF U. S. SMALL BUSINESS ADMINISTRATION U. S. GOVERNMENT ACQUIRED PROPERTY DATE: September 19, 1983 TIME: 10:00 A.M. LOCATION OF PROPERTY: 101 West Rock St., Fayetteville, AR LEGAL DESCRIPTION: Part of Block 40 in the Town of Fayetteville, AR, as designed upon the original plat of said town and described as follows, to -wit: Beginning at the NE corner of said block and running thence W 82.5 feet to the NE corner of the lot conveyed to George Holcomb, thence run S 141.5 feet; thence run E 82.5 feet; thence run N 141.5 feet to the point of beginning. Property on Southwest corner of Rock and Block Street in downtown Fayetteville. 95' front feet on Rock Street. The building is approximately 80' X 50' (4000 Sq. ft.) with 27.5 X 40' (1100 sq. ft.) basement. All metal building with brick and glass front. Foundation and basement of concrete block construction. Cement slab floors throughout. Lease will expire 9-1 -89 and possession can be obtained at that time. Representative will be at 101 W. Rock St. one hour before sale for inspections. TERMS: Financing on up to 75% of purchase price with 9% fixed rate for up to 15 years. 10% escrow required on the day of the sale and the balance of down payment at closing. SALE AND FINANCING SUBJECT TO SBA'S CONFIRMATION. SMALL BUSINESS ADMINISTRATION 320 West Capitol, Suite 601 Little Rock, AR 72201 PHONE: (501) 378-5706 - Ask for Liquidation Officer OFFER TO PURCHASE REAL ESTATE AGREEMENT The undersigned, hereinafter called "Purchaser", hereby offers to purchase from Small Business Administration hereinafter called "Seller", certain real property located in County, �L�� '��ee1•..a� %�` G-'�a1 • -� is.known as �zri�/l//� r /,% and which is more particularly described in that certain exhibit which is attached hereto and incorporated herein as Exhibit A. Purchaser will pay for said real property the sum of DOLLARS ($59 ) , $ i-2yDeLoo in cash, the deferred balance o f $ .___ p to be represented by a promissory note bearing — 8 simple interest per annum, due and payable in full years from t he date thereof, same to be amortized over years, with monthly payments thereon of $ per month, and secured by a purchase money mortgage on said real property, but said note and mortgage shall be subject to the following additional specific provisions and stipulations: Deed to be made in name of C/ q% .1/417:9 -1,4;, -/- Conveyance is to be made, at Seller's sole option, by Special Warranty or Quitclaim Deed, subject to existing zoning ordinances, • • and, in event property is residential, to usual protective convenants and recorded restrictions applicabale to the vicinity. Tomake this offer valid, Purchaser herewith deposits the sum of $ -9_90 which sum, if the sale is consummated, shall be credited on the purchase price and constitute a part of the cash payment for said property. In the event that this offer is not accepted by the Seller within sixty (60) days from date, then this o ffer shall stand revoked and the sum deposited shall be returned to Purchaser. Should Purchaser revoke or withdraw this offer, or fail to refuse to carry out its terms, then Sellermay, at its sole option, either (1) retain the sum of money deposited by Purchaser which shall constitute liquidated damages for Purchaser's failure or ✓ efusal to abide by the terms of this offer, or (2) proceed to e nforce Seller'-s—regal rights, if any, including, but not limited to, specific performance. - 2 Until date of final settlement, Seller assumes risk of loss or damage to the property by fire, windstorm or other similar casualty; but shall be entitled to recover from the purchaser for any damage or loss caused by Purchaser's intentional actions or negligence. In the event of loss not caused by Purchaser and with exceeds twenty (20) percent of sale price, either Purchaser or Seller may terminate this contract, and deposit shall then be returned to Purchaser, and P urchaser and Seller sall have no further liability to one another u nder the terms of this contract. Should this offer be accepted by the Seller, Purchaser agrees to close the purchase within thirty (30) days from the date that notification of acceptance is given to Purchaser. Purchaser agrees to assume and pay any and all taxes of whatever kind, specifically including all real and personal property taxes, which are, as of this date, outstanding against the subject r really perty, or which may beco e d e and afre yable / h aft�r 619 // If Purchaser desires titinsurance, i shall be to ed solely at Purchaser's expense. Possession of property to be secured by Purchaser with delivery of deed. This the MY/day of i �.-X: , 19 c,'r f 19 • The foregoing offer is accepted this day of SMALL BUSINESS AD4INISTRATION By :h LOSS