HomeMy WebLinkAbout126-04 RESOLUTION•
RESOLUTION NO. 12 6- 0 4
a
A RESOLUTION TO GRANT APPROVAL TO SOLICIT
SEALED BIDS FROM THE PUBLIC TO PURCHASE
THE PORTION OF CITY PROPERTY (FORMERLY
SHAKE'S FROZEN CUSTARD) NOT USED FOR THE
INTERSECTION IMPROVEMENT ON SIXTH STREET
WHEREAS, the City Council of the City of Fayetteville, Arkansas has already
passed a resolution to offer this property for sale as required by Fayetteville Code §34.27
(A); and
WHEREAS, two simultaneous and independent appraisals of the real property have
been obtained and provided to the City Council pursuant to Fayetteville Code §34.27 (C);
and
WHEREAS, public notification including at least four newspaper publications,
certified mail to all adjacent property owners and signs, prominently displayed at all
approaches to the property, have been accomplished pursuant to Fayetteville Code §34.27
(D); and
WHEREAS, Fayetteville Code §34.27 (E) provides "Upon an affirmative vote of the
City Council, the city shall solicit sealed bids, at a minimum price set by the City Council
from all interested parties. Bids must equal or exceed the minimum price set by the City
Council and the appraised value of the property."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby directs
the staff to solicit sealed bids at a minimum price of $178,000.00 for the city owned property
at 2050 W. 6th Street.
PASSED and APPROVED this the 17th day of August, 2004.
ATTEST:
By:
By:
,„a,i t ,FOODY, Mayor
z�V;
NAME OF FILE:
CROSS REFERENCE:
Item #
Date
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Resolution No. 126-04
wlAppraisal Report & Summary of Appraisal Report
Document
1
07/30/04
memo to mayor & City Council
2
draft resolution
3
letter to Jill Goddard
from Real Estate Consultants
4
legal description
5
Staff Review Form
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memo to Jill Goddard
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8
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12
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15
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17
NOTES:
,ems
IIIg/,77o'/
• City Council Meeting of August 17, 2004
.Siv fit` reed
CITY COUNCIL AGENDA MEMO Pro� 12; get/�/
To: Mayor and City Council
Thru: Tim Conklin, Community Planning and Engineering Services Director
Gary Coover, City Engineer
From: Jill Goddard, Land Agent
Date: July 30, 2004
Subject: Approval to solicit sealed bids for the remainder of Parcel No. 765-12164-000
(formerly known as Shake's Frozen Custard, 2050 W. 6th Street). Said sealed
bids to be at a minimum price set by the City Council as based upon review of
the two independent appraisals (attached).
RECOMMENDATION
Staff recommends approval of soliciting sealed bids for the remainder of Parcel No. 765-12164-
000.
BACKGROUND
Parcel No. 765-12164-000 was acquired in its entirety as part of the relocation of Sang Avenue.
Through purchase of the whole, the City avoided a settlement by court action with potentially
high severence damages. The contractor also did not have to take special precautions during
construction to keep access to the business available at all times.
Intent to Sell was approved by City Council at their June 15, 2004 council meeting. Two
independent appraisals of the property have been obtained (copies attached). A survey of the
property has been completed, including the street vacation on the north side (approved at
Planning Commission meeting of July 12, 2004).
DISCUSSION
Now that new Sang Avenue/Sixth Street/ Hollywood Street intersection is completed, the City
can consider the sale of the remainder of Parcel No 765-12164-000, including the building, as it
serves no municipal purpose. As per Ordinance No. 4358, "upon an affirmative vote of the City
Council, the City shall solicit sealed bids, at a minimum price set by the City Council, from all
interested parties. Bids must equal or exceed the minimum price set by the City Council and the
appraised value of the property."
Upon City Council approval, property will be advertised for sale and the sealed bid opening
scheduled. Results be be presented to City Council in the near future.
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RESOLUTION NO.
A RESOLUTION TO GRANT APPROVAL TO SOLICIT
SEALED BIDS FROM THE PUBLIC TO PURCHASE
THE PORTION OF CITY PROPERTY (FORMERLY
SHAKE'S FROZEN CUSTARD) NOT USED FOR THE
INTERSECTION IMPROVEMENT ON SIXTH STREET
WHEREAS, the City Council of the City of Fayetteville, Arkansas has already
passed a resolution to offer this property for sale as required by Fayetteville Code §34.27
(A); and
WHEREAS, two simultaneous and independent appraisals of the real property have
been obtained and provided to the City Council pursuant to Fayetteville Code §34.27 (C);
and
WHEREAS, public notification including at least four newspaper publications,
certified mail to all adjacent property owners and signs, prominently displayed at all
approaches to the property, have been accomplished pursuant to Fayetteville Code §34.27
(D); and
WHEREAS, Fayetteville Code §34.27 (E) provides "Upon an affirmative vote of the
City Council, the city shall solicit sealed bids, at a minimum price set by the City Council
from all interested parties. Bids must equal or exceed the minimum price set by the City
Council and the appraised value of the property."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby directs
the staff to solicit sealed bids at a minimum price of $178,000.00 for the city owned property
at 2050 W. 6th Street.
PASSED and APPROVED this the 17th day of August, 2004.
ATTEST:
By:
SONDRA SMITH, City Clerk
APPROVED:
By:
DAN COODY, Mayor
THE
REAL ESTATE
CONSULTANTS
•REALTORS • APPRAISERS • CONSULTANTS•
July 30, 2004
Ms Jill Goddard
The City of Fayetteville
113 W. Mountam
Fayetteville, AR 72701
RE- Appraisal Services
Dear Ms. Goddard:
• •
Former Shake's Frozen Custard Building
2050 W. 6th St.
Fayetteville, AR 72701
118 N. East Ave.
P.O. Box 726
Fayetteville. AR 72702
Phone (479) 442 0762
In compliance with your request, and for the purpose of estimating the current Market Value of the above
captioned property, 1 hereby certify that I have personally inspected the property and made a survey of matters
pertinent to the estimation of its value. The intended use of this appraisal is for sale evaluation purposes of the
client.
I further certify that I have no interest, present or contemplated, in the property under appraisement, & that the
fee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value.
The following narrative appraisal report contains the data gathered in the investigation, and shows the method of
appraisal in detail. The report has been prepared in conformity with the Uniform Standards of Professional
Appraisal Practice as promulgated by the Appraisal Foundation. This is considered a Complete Summary
Appraisal Report.
Based upon the inspection of the subject property and the investigation and analysis carried out to this report, it
is the considered opinion of the appraiser that the Market Value of the property as of July 21, 2004 and subject
to the assumptions and limiting conditions set forth within the body of this report, is as follows:
ONE HUNDRED SEVENTY EIGHT THOUSAND DOLLARS
($178,000)
Respectfully Submitted,
Mark E Risk, GAA
State Certified General Appraiser
#CG0202
f-1AL
Leslie Manning
State Certified General Appraiser
#CG2445
City of Fayetteville
113 W. Mountain
Fayetteville, Ar. 72701
• •
July 27`h, 2004
RE: Summary Narrative Appraisal Report regarding the Market Value of the land and
commercial building located at 2050 W. 6d' St., Fayetteville, Washington County,
Arkansas.
To Whom It May Concern:
Pursuant to your request, I have conducted an investigation and appraised a tract of land with
commercial improvements located at 2050 W. 6th St., Fayetteville, Arkansas.
The property Legal Description is:
Being +/-0.28 Acres, MOL, and being Part of Block 2, Westwood Addition, Fayetteville,
Washington County, Arkansas.
The purpose of this analysis and valuation report is to estimate the Market Value of the property
as of July 22nd , 2004.
As per our agreement, the data and analysis is presented in a Summary Format and the Report
does not deviate from the USPAP, as permitted upon agreement between client and appraiser. At
our client's request, the results of our investigation and analyses, which comprise a Complete
Appraisal, are being presented via a Summary Appraisal Report Format. Therefore, the
appraiser does not invoke the Departure Rule as allowed under Appraisal Standards Nos. I and 2,
Rule 2-2, adopted by the Appraisal Standards Board on March 22, 1994, effective July 1, 1994,
and revised January 1, 2000. A full file memorandum is maintained in my office
We certify that, to the best of our knowledge and belief,
(1) The statements of fact contained in this report, upon which the analysis, opinions and
conclusions expressed herein are based, are true and correct.
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(2) The reported analyses, opinions and conclusions are limited only by the reported
assumptions and limiting conditions, and is our personal, unbiased professional analyses,
opinions and conclusions.
(3) I have no present or prospective interest in the property that is the subject of this analysis
and I have no personal interest or bias with respect to the property or parties involved with this
assignment.
(4) My compensation is not contingent upon an action or event resulting from the analyses,
opinions or conclusions in, or use of, this report, or upon developing or reporting of a
predetermined value or direction of value that favors the cause of the client, the amount of the
value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the use of the appraisal.
(5) This assignment was not based upon a requested minimum value, a specific valuation, or
the approval of a loan.
(6) My analyses, opinions and conclusions were developed, and this report has been prepared
in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), as
promulgated by the Appraisal Standards Board of the Appraisal Foundation, and the Code of
Professional Ethics and Standards of the National Association of Master Appraisers.
I hereby certify that I have inspected the property described, and it is felt that all data gathered by
my investigation is from sources believed reliable and true.
According to Standards Rule 2-2(c), a Limited Restricted/Summary Appraisal Report should
have these minimum requirements:
- Describe the extent of the process, collecting, confirming and reporting data.
- State all assumptions and limiting conditions that affect the analyses, opinions and
conclusions.
- State the appraisal procedures followed, state the value conclusion and reference the
existence of specific file information in support of the conclusion.
- State the appraiser's opinion of highest and best use of the real estate, when such an opinion
is necessary and appropriate.
- State the exclusion of any of the usual valuation approaches.
- Contain a prominent use restriction that limits reliance on the report to the client and warns
that the report cannot be understood properly without additional information in the workfile of
the appraiser, and clearly identify and explain permitted departures from the specific guidelines
of Standard 1.
• •
- Include a signed certification in accordance with Standards Rule 2-3.
The function of this appraisal is to assist the client in determining a fair and equitable Market
Value of the subject property. The value estimate is based on the real property only. No
furniture, equipment or personal property is included in the value estimate.
The value is based on the definition of Market Value as set forth by the FIRREA Act of 1989,
effective August 24, 1990. Please refer to the definition in Exhibit "A" following this letter.
In the accompanying report, you will find the results of my investigation containing the facts,
analysis and conclusions pertaining to the subject property and the final estimate of value.
As a result of investigation, studies and analyses of sales, offers of sales, cost data, and allfactors
in the marketplace which affect value, it is the opinion and judgment of the appraiser that the
property described herein has a Market Value in Fee Simple Interest as of July 22nd , 2004 of:
ONE HUNDRED SEVENTY TWO THOUSAND DOLLARS
$172,000
Intended Purposes/User: This Appraisal Report is intended to be used for estimating
prospective market value for the owner and this appraisal is intended to be used only by the
client/addressee only for such purposes. The client is The City of Fayetteville, Ar. Any other
use or reliance of this report by an unauthonzed third party is prohibited unless otherwise
specified.
Respectfully submitted,
�4..00I1.3mAPsR ititi
yQ,ob GEHrIF/Q j�sf9��
Dor?LJrailitt,154.4.�"
PagisB;AgfitTifigan4E
Stale Cgrtdifafathedil A} praiser
Liccrrjs2' 1 N
•
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P
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R- 20.00 FT
L - 30.20 FT,
40 0 40
SCALE: 1" = 40'
N 6712'42' NI
93 56 FT
:0.28_ ACRES -L._
r ElLOCK 2
-- WEST WOOD
�.. ADDITION
STORY
CONCRETE
BLOCK
L BUILDING' •
2050 W 6th St.
SHAKE'S
• 1T99`IP
24 FT
R - 262.00 PT
L 157.07 FT
- 33.44'21 R
T•B.79 PT
R - 28.96 PT
L . 17.01 FT
LEGAL DESCRIPTION
All that certain tract or parcel of land being a part of the SE ''A of the SWI/4, and part of the NE ''A of the NW I/4of Section
17, Township 16 North, Range 30 West, Washington County, Arkansas. And being more particularly described by metes and
bounds as follows:
Beginning at the SW Corner of the SE ''A of the SW ''A of Section 17, Township 16 North, Range 30 West, Washington
County, Arkansas. Said point being the NW Corner of Block 2 of Westwood Addition to the City of Fayetteville, Arkansas.
THENCE - North 02° 56' 11" East 6.16' to the south right-of-way line of Old Farmington Road;
THENCE - with said right-of-way through the following calls:
THENCE -through a curve to the left with a radius of 225.00', a central angle of 25° 27' 53", arc length of 54.53', a chord
bearing of North 66° 59' 31" East for a distance of 54.40';
THENCE - through a curve to the right with a radius of 20.00', a central angle of 286° 28' 44", arc length of 30.28', a chord
bearing of South 76° 34' 38" East for a distance of 27.47';
THENCE - South 33° 12' 12" East 17.23';
THENCE - through a curve to the right with a radius of 262.00', a central angle of 21° 52' 07", arc length of 57.87', a chord
bearing of South 26° 52' 32" East for a distance of 57.75';
THENCE - through a curve to the right with a radius of 28.96', a central angle of 33° 46' 27", arc length of 17.07', a chord
bearing of South 01° 38' 09" East for a distance of 16.83' to the north right-of-way of State Highway No. 62;
THENCE - South 60° 30' II" West 135.82' with said right-of-way to a set 5/8" 1.Pin;
THENCE - North 02° 42' 11" West 134.89' to the POINT OF BEGINNING. The above described property having been
surveyed by Bart L.Petray contains 0.28 acres of land more or less.
411
STAFF REVIEW FORM - NON-FINANCIAL OBLIGATION
X AGENDA REQUEST
For the Fayetteville City Council Meeting of: August 17, 2004
FROM:
Jill Goddard Engineering Community Planning & Eng. Services
Name Division Department
ACTION REQUIRED: Resolution granting approval to solicit sealed bids for the remainder of Parcel No. 765-
12164-000 (formerly known as Shake's Frozen Custard, 2050 W. 6th Street). Said sealed bids to be at a
minimum price set by the City Council as based upon review of the two independent appraisals (attached).
SUMMARY EXPLANATION:
Property was acquired in its entirety as part of the relocation of Sang Avenue. Now that the new Sang Avenue/Sixth
Street/Hollywood Avenue intersection is completed, the remainder of Parcel No. 765-12164-000 (including the
building) can be sold as it serves no municipal purpose.
Intent to Sell was approved by City Council at the June 15, 2004 council meeting. Two independent appraisals of the
property have been obtained (copies attached). Survey of the property has been completed, including the street
vacation on the north side (approved at Planning Commission meeting of July 12, 2004).
City Council to review the two independent appraisals and to set minimum price to be accepted. Property will then be
advertised for sale with sealed bid opening scheduled. Results to be presented to City Council.
Finance & Internal Services Dir.
Date
Received in Mayor's Office
Cross Reference:
Previous Ord/Res#:
Orig. Contract Date:
Orig. Contract Number:
New Item:
Date
Yes No
•
FAYETTEIALLE
THE CITY OF FAYETTEVILLE, ARKANSAS
City Clerk Division
DEPARTMENTAL CORRESPONDENCE
s
113 West Mountain
Fayetteville, AR 72701
Telephone: (479) 575-8323
To: Jill Goddard
Land Agent
From: Clarice Buffalohead-Pearman
City Clerk Division
Date: August 20, 2004
Re: Resolution No. 126-04
The City Council passed a resolution, August 17, 2004, authorizing the solicitation of sealed bids for 2050
W. 6'" Street. I have attached a copy of that resolution for you.
The resolution with attachments will be recorded in the city clerk's office and microfilmed. If anything
else is needed please let the clerk's office know.
/cbp
attachments
cc: Nancy Smith, Internal Auditor
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MICROFILMED
APPRAISAL REPORT
City of Fayetteville
SHAKES FROZEN CUSTARD
FORMER BUILDING
2050 W 6th St.
Fayetteville, AR
By
The Real Estate Consultants
118 N. East Ave.
Fayetteville, AR 72701
(c) Copyright 2004 by The Real Estate Consultants
1 THE
IREAL ESTATE
CONSULTANTS
1 • REALTORS • APPRAISERS • CONSULTANTS •
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July 30, 2004
Ms. Jill Goddard
The City of Fayetteville
113 W. Mountain
Fayetteville, AR 72701
RE Appraisal Services
Dear Ms. Goddard:
Former Shake's Frozen Custard Building
2050 W. 6th St.
Fayetteville, AR 72701
118 N. East Ave.
P.O. Box 726
Fayetteville, AR 72702
Phone (479) 442 0762
In compliance with your request, and for the purpose of estimating the current Market Value of the above
captioned property, I hereby certify that I have personally inspected the property and made a survey of matters
pertinent to the estimation of its value. The intended use of this appraisal is for sale evaluation purposes of the
client.
I further certify that I have no interest, present or contemplated, m the property under appraisement, & that the
fee was not contingent upon the value estimate reported, nor based upon a percentage of the appraised value.
The following narrative appraisal report contains the data gathered in the investigation, and shows the method of
appraisal m detail. The report has been prepared in conformity with the Umform Standards of Professional
Appraisal Practice as promulgated by the Appraisal Foundation. This is considered a Complete Summary
Appraisal Report.
Based upon the inspection of the subject property and the investigation and analysis carried out in this report, it
is the considered opinion of the appraiser that the Market Value of the property as of July 21, 2004 and subject
to the assumptions and limiting conditions set forth within the body of this report, is as follows:
ONE HUNDRED SEVENTY EIGHT THOUSAND DOLLARS
($178,000)
Respectfully Submitted,
��,v`. R e
.'4Rxe.as$
Mark E Risk, GAA
State Certified General Appraiser
#CG0202
r
STATE
CERTIFIED
GENERAL
• No. CG2F/5
t
Leslie Manning
State Certified General Appraiser
#CG2445
TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS & CONCLUSIONS 1
LOCATION MAP 2
SUBJECT PICTURES 3
SUBJECT PICTURES 7
STATEMENT OF OWNERSHIP 9
PURPOSE OF THE APPRAISAL 9
DATE OF APPRAISAL 9
PROPERTY RIGHTS APPRAISED 9
HISTORY 9
LEGAL DESCRIPTION 10
DEFINITION OF MARKET VALUE 11
ASSUMPTIONS AND LIMITING CONDITIONS 12
THE APPRAISAL. PROCESS 17
SCOPE OF THE APPRAISAL 18
NEIGHBORHOOD DATA 19
SITE DATA 20
SURVEY 21
ZONING MAP 22
COMPLIANCE WITH THE AMERICANS WTI'H DISABILITIES ACT 27
ENVIRONMENTAL ANALYSIS 28
HIGHEST AND BEST USE ANALYSIS 29
MARKET TRENDS 30
DETERMINATION OF MARKET VALUE 31
THE COST APPROACH 32
COMPARABLE LAND SALES MAP 33
COMPARABLE LAND SALES 33
COMPARABLE LAND SALES 34
ANALYSIS OF COMPARABLES & CONCLUSION OF LAND VALUE 37
ESTIMATED CONSTRUCTION COST OF SUBJECT IMPROVEMENTS 38
THE MARKET APPROACH 39
IMPROVED SALES MAP 40
COMPARABLE MARKET DATA 41
ANALYSIS OF COMPARABLES & CONCLUSION OF VALUE 47
MARKET DATA ADJUSTMENT GRID 49
50
51
52
53
54
55
56
57
58
60
61
62
64
66
MARKET DATA ADJUSTMENT GRID - CONTINUED
THE INCOME APPROACH
DETERMINATION OF ECONOMIC RENT
COMPARABLE LEASE DATA
DETERMINATION OF NET OPERATING INCOME
DETERMINATION OF CAPITALIZATION RATE
DETERMINATION OF VALUE - INCOME APPROACH
CORRELATION, ANALYSIS & CONCLUSION
CORRELATION, ANALYSIS & CONCLUSION
CERTIFICATE OF APPRAISER
ADDENDUM
DEED
ZONING CLASSIFICATION (C-2) THOROUGHFARE COMMERCIAL
QUALIFICATIONS
SUMMARY OF SALIENT FACTS & CONCLUSIONS
Property Type: Commercial Restaurant Building
Location:
Effective Date
of the Appraisal:
2050 W. 6th St.
Fayetteville, AR 72701
The subject site was inspected on July 21, 2004. The effective date of the
appraisal is the date of inspection — July 21, 2004. The opinions set forth in this
report are stated as of July 29, 2004.
Zoning: C-2 (Thoroughfare Commercial)
Site: 136.82' x 128.73' x 6.16' x 54.53' x 30.28' x 17.25' x 57.87' x
17.07' - 12,197 Sq. Ft. or 0.28 Acres
Improvements: 1,113SF Commercial Building
Utilities: All municipal utilities available
Highest and Best Use: Drive-Thru Fast Food Restaurant or Drive-Thru Commercial Facility
Flood Data: FEMA Map #05143C0091 D, The subject is located in Flood Hazard
Area Zone X
Value Indications:
Cost Approach $187,000
Market Data Approach $177,000
Income Approach $167,000
Final Estimate of Market Value:
$178,000
Note: This appraisal report has been prepared for the exclusive benefit of The City of Fayetteville. It may
not be used or relied upon by any other party. Any party who uses or relies upon any information in this
report without the preparer's written permission, does so at their own risk. This report is considered a
complete summary appraisal report.
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LOCATION MAP
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Front View of Subject Property — 2050 W. 6th St.
Rear View of Subject Property — 2050 W. 6th St.
SUBJECT PICTURES
W. 6th St. Looking West
W. 6th St. Looking East
4
View of Old Farmington Rd. Looking West