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HomeMy WebLinkAbout55-10 RESOLUTIONRESOLUTION NO. 55-10 A RESOLUTION APPROVING A CONTRACT FOR THE PURCHASE OF A SIXTY-FOUR SPACE PARKING LOT LOCATED ON THE SOUTHEAST CORNER OF BLOCK AVENUE AND ROCK STREET FROM ROCK STREET PARKING, LLC IN THE AMOUNT OF $342,000.00 PLUS APPLICABLE CLOSING COSTS, AND APPROVING A BUDGET ADJUSTMENT OF $344,000.00 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 approves a contract, a copy of which is attached to this Resolution as Exhibit "A" and incorporated herein as if set out word for word, with Rock Street Parking, LLC for the purchase of a sixty-four space parking lot located on the southeast corner of Block Avenue and Rock Street in the total amount of $342,000.00, plus applicable closing costs. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "B" and incorporated herein as if set out word for word, in the amount of $344,000.00. PASSED and APPROVED this 6th day of April, 2010. APPROVED By: LI 1. foiT L P JORD .006yor ATTEST: tastuitz, SDRA E. SMITH, City Clerk/TreasurerYN9 ..;%_kC.}. • bl Y 0;-" • .&.A i',4-..• • ii" .-: ..-... . • -23 '-', to - • :-. - 5. :FAYETTEVILLE...:A4 .t4-.• VS.. 4q 1kA 1451.t1p. 7 /A/G-r0tA "iiiiiiiin, ,,,,, , Rya, c.51.4ad- OFFER AND ACCEPTANCE CONTRACT 1. The City of Fayetteville, Arkansas, a municipal corporation, offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, the City of Fayetteville shall pay for the property at closing, the total and cash payment of $342,000.00. 3. Contingent Earnest Money Deposit: ROCK STREET PARKING. LLC waives the requirement of eamest money from the City of Fayetteville. 4. Conveyance will be made to the City of Fayetteville 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. Such conveyance shall include mineral rights owned by ROCK STREET PARKING, LLC. 5. ROCK STREET PARKING. LLC shall furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the City of Fayetteville. The City of Fayetteville shall pay the total cost of the title insurance. 6. ROCK STREET PARKING. LLC agree(s) to allow the City of Fayetteville, if the City of Fayetteville so desires, at City of Fayetteville's expense, to survey the property. ROCK STREET PARKING. LLC agree(s) to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the City of Fayetteville. 7. Taxes and special assessments due on or before closing shall be paid by ROCK STREET PARKING, LLC. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. 8. The closing date shall be within fourteen (14) days after approval of this offer by the City Council. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to the City of Fayetteville on the date of closing, without any further obligation to prior contracts entered into by ROCK STREET PARKING, LLC. 10. ROCK STREET PARKING. LLC hereby grant(s) permission for the City of Fayetteville or its employees or designates to enter the above described property and improvements for the purpose of inspection and/or surveying. 11. All fixtures, improvements and attached equipment are included in the purchase price. 12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by ROCK STREET PARKING. LLC. 13. ROCK STREET PARKING. LLC shall disclose to the City of Fayetteville any and all environmental hazards of which ROCK STREET PARKING. LLC has/have actual knowledge. Upon acceptance of all conditions and terms of this Offer and Acceptance, the City of Fayetteville and ROCK STREET PARKING, LLC shall share equally the costs of any and all testing for the existence of environmental hazards. Should the existence of environmental hazards be known or determined, ROCK STREET PARKING LLC shall cure such, at their expense; or, in the alternative, at the City of Fayetteville's discretion, the City of Fayetteville may cure such environmental hazard, and ROCK STREET PARKING, LLC shall indemnify the City of Fayetteville for all costs associated with said cure. EXHIBIT A OFFER AND ACCEPTANCE CONTRACT Page 2 of 4 14. This agreement shall be governed by the laws of the State of Arkansas. 15. This agreement, when executed by both the City of Fayetteville and ROCK STREET PARKING. LLC 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. 16. This contract expires, if not accepted by ROCK STREET PARKING. LLC on or before the 18th day of March 2010. 17. The City of Fayetteville shall submit this fully executed Offer and Acceptance Contract to the City Council for their approval within twenty (20) days of acceptance by ROCK STREET PARKING, LLC. 18. NOTICE: THE CITY OF FAYETTEVILLE ASSERTS AND ROCK STREET PARKING, LLC HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO CITY OF FAYETTEVILLE OF THE $0.00 EARNEST MONEY DEPOSIT. AGENT OR WITNESS: %Secuuk_.5-n-A City of of Fayetteville, Arkansas, A municip rporation Date: Date: Date: Date: Date: Date: OFFER AND ACCEPTANCE CONTRACT Page 3 of 4 EXHIBIT "A" PROPERTY DESCRIPTION A part of Block 41, in the Original Town (now City) of Fayetteville, Arkansas, as shown on plat of record in plat book 4, at page 3, plat records of Washington County, Arkansas, being more particularly described as follows: Beginning at the NW comer of said Block 41, said point being an existing iron; thence S 89°41'51" E, along the North line of said Block 41, 134.00 feet to an existing iron; thence S 00°30'11' W, 183.22 feet (record 184.00 feet) to an existing iron; thence N 89°20'27" W, 134.00 feet to an existing iron on the West line of said Block 41; thence N 00°30'11" E, 182.32 feet (record 184.00 feet) to the point of beginning. SIGNED FOR IDENTIFICATION: (1 1/1 f 7121. ordi'Smith, City Clerk Date: 3119//6 Date: Date: Date: d//trik) OFFER AND ACCEPTANCE CONTRACT Page 4 of 4 ACKNOWLEDGMENT STATE OF ARKANSAS SS, COUNTY OF WASHINGTON BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting 0 k Notary Public within and for said County and State, personally appeared CO) W(I" , to me well known as the person(s) who executed the foregoing document, and who stated and ackn s ledged that he/she/they is/are of and is/are duly authorized to execute the foregoing instrument for and in the name and behalf of said , and further stated and acknowledged that he/she/they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. V& WITNESS my hand and seal on this day of MY CTIISSION EXPIRES: 9- 1 -Th - 10. L400,...6..,... BARBARA L. C MY COMMISSION # 12 EXPIRES: February 2, 2017 IP,"fig'V WashIn ton Coun Public ACKNOWLEDGMENT STATE OF ARKANSAS SS. 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 Lioneld Jordan 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. WITNESS my hand and seal on this 1 lc day of (AJOIO , 2010. MY COMMISSION EXPIRES: o2 tAA-Ligi il)S1 Notary Public frit" 4F<;:PT ▪ .0 • Zik 124O, • ).8*. 01 1"1 Y r' • 0S! • N.\ ' • • 40Zr. '.7.17 • 0C, • PL113 • e •Ez, • • • ;Rites 2-1-- 6')••••••••••‘• 4111111110 City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2010 Department: Transportation Services Division: Parking & Telecommunications Program: Off -Street Parking Request Date 4/6/2010 Adjustment Number JUSTIFICATION TO INCREASE PROJECT / ITEM: $344,000 is requested in the Rock Street Parking Lot Purchase capital project. The purchase price of the property is $342,000.00 plus a contingency of $2,000.00 to cover closing costs. JUSTIFICATION TO DECREASE PROJECT/ ITEM (OR RECOGNIZING REVENUE): A budget adjustment of $6,750.00 will be taken from Rent Expense that will be the unused remainder of the lease for the lower level. The other $337,250.00 will be taken from Off -Street Parking Fund Balance which may ONLY be used for parking related items (land acquisitions, operations, maintenance, equipment, etc.). Account Name Land Acquisition Use of Fund Balance Rent Increase Decrease Project.Sub Account Number Budget Budget Number 2130.9130.5805.00 344,000 10021 . 1 2130.0913.4999.99 337,250 2130.9130.5308.00 6,750 TOTAL 344,000 344,000 'vision Head s'rov"•-__ -10 Date 673 Date V*--‘ -/9 Date 4 - 10- lei o Budg Director Departm t Director Nf'0.3. Fk-nce Director Date Date a e Requested By kspringer Budget & Research Use Only Type: A Description: General Ledger Date Posted to General Ledger Posted to Project Accounting Initial Date C:pocuments and Settings1scrossonDesktoplRock Street Parking Lot1AMA BAFORM_2010_RackStreetParking Initial Date Sharon Crosson Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 4/6/2010 City Owner) Meeting Date Agenda Items Only Parking Management Division Action Required: Transportation Services Department A resolution to approve the purchase of a 64 space parking lot located on the southeast comer of Block Avenue and Rock Street, and approving a budget adjustment for $343,000.000 for the purchase and closing costs. 343,000.00 Cost of this request 2130-9130-5805-00 Account Number 10021-1 Project Number Budgeted Item 77 Category / Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached 11111111 Rock Street Parking Lot Program Category / Project Name Land Acquisition Program (Project Category Name Off -Street Parking Fund Name `Pec3 c _ LL.„_ 3 -II- 2.0t6 Finance and Internal Services Director Date Chief of 41 /, Ati1140.4Y Ma r /0 Date LAdDa Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Comments: Revised January 15, 2009 'Mtteffle THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS www.accessfayetteville.org CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Don Marr, Chief of Staff Terry Gulley, Director of Transportation From: Sharon Crosson, Parking and Telecom Manager 4/1" Date: March 18, 2010 Subject: Purchase of 64 Space Parking Lot and Approval of Budget Adjustment PROPOSAL: City staff is requesting a resolution to approve the purchase of a 64 space parking lot located directly behind the Town Center Parking Garage on the southeast corner of Block Avenue and Rock Street, and the approval of a' budget adjustment in the amount of $343,000.00 to cover the purchase price plus closing costs. The Engineering Division had the property appraised in October 2009, at which time it appraised at $380,000.00. City staff negotiated a purchase price of $342,000.00 with the City paying closing costs, which was accepted by the seller. RECOMMENDATION: This bi-level parking lot is owned by Rock Street Parking, LLC and was originally listed for sale at a price of $525,000.00. The City currently leases 27 spaces on the lower level for $9,720.00 per year. City vehicles are currently using this parking lot when working at City Hall in an effort to keep public parking spaces available to visitors of our downtown area. The upper level has 37 spaces and is vacant most of the time. In December 2009, the construction of the new Disctict Court and Prosecutor Building was completed. The site for this building is located where the City previously had a 30 space parking lot. 20 of these spaces were used for Police Department vehicles which are now parking on the public parking spaces on street. Due to the proximity of the upper level parking lot to the Police Department, this is an ideal area to park the overflow of police vehicles that are currently taking up public spaces. The Police Department has a total of 64 vehicles and only 32 on-site spaces. That leaves 32 vehicles that need a parking space, plus any outside agency such as Washington County units or other area police agencies that conduct business at our Police Department. If we choose not to purchase this parking lot, we will have another 27 city vehicles that will be displaced and will have to take up even more valuable downtown public parking. BUDGET IMPACT: The purchase price of the property is $342,000.00 plus a contingency of $1,000.00 to cover closing costs. A budget adjustment of $6,750.00 will be taken from Rent Expense that will be the unused remainder of the lease for the lower level. The other $336,250.00 will be taken from Off -Street Parking Fund Balance which may ONLY be used for parking related items (land acquisitions, operations, maintenance, equipment, etc.). RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT FOR THE PURCHASE OF A SIXTY-FOUR SPACE PARKING LOT LOCATED ON THE SOUTHEAST CORNER OF BLOCK AVENUE AND ROCK STREET FROM ROCK STREET PARKING, LLC IN THE AMOUNT OF $342,000.00 PLUS APPLICABLE CLOSING COSTS, AND APPROVING A BUDGET ADJUSTMENT OF $344,000.00 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 approves a contract, a copy of which is attached to this Resolution as Exhibit "A" and incorporated herein as if set out word for word, with Rock Street Parking, LLC for the purchase of a sixty-four space parking lot located on the southeast corner of Block Avenue and Rock Street in the total amount of $342,000.00, plus applicable closing costs. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "B" and incorporated herein as if set out word for word, in the amount of $344,000.00. PASSED and APPROVED this 6th day of April, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer Summag Appraisal' Report The City of Eayetteva- Engineering Division As of October 20, 2009 Client: City of Fayetteville Engineering Division 125 W Mountain St Fayetteville, AR 72701 Presented By: The Real Estate Consultants 118 N. East Avenue Fayetteville, AR 72701 Produced By: Mark E. Risk State Certified General Appraiser #0202 File #09-0228 Copyrig fit 2009 by The WcalEstate ConsuCtants A.1T *grits Wfserved 1a61 of Contents Salient Facts & Conclusions 3 Subject Location Map 4 Subject Pictures 5 Legal Description 9 Appraisal Inspection Comments 9 Section II - Appraisal -Premises 10 Market Value Defined 10 Definition of Special Purpose Property 10 Purpose Of The Appraisal 11 Intended Use And User Of The Appraisal 11 Property Rights Appraised 11 Subject History 11 Subject Status 11 Assumptions and Limiting Conditions 12 Scope of the Appraisal 17 General Comments 17 Scope of the Appraisal— Appraisal Methods Used 18 Section III — Data Presentation 19 Neighborhood Description 19 Property Description 20 Subject Property Aerial Map 21 City Downtown Zoning Map 21 Subject Site Water and Utility Map 22 Section IV — SuOect Analysis a Valisation Approaches 23 Highest And Best Use Analysis 23 The Four Tests of Highest & Best Use 24 The Market Data Approach 26 The Market Data Approach -- Comparable Land Sales Map 27 The Market Data Approach — Comparable Sales Data 28 Analysis Of Comparables And Conclusion Of Land Value 32 The Cost Approach Methodology 33 Cost Approach Data 34 The Income Approach 35 The Income Approach -- Determination of Economic Rent 36 The Income Approach -- Determination of Economic Rent 37 The Income Approach -- Determination of Net Operating Income 38 The Income Approach — Determination of Capitalization Rate 40 The Income Approach — Determination of Value 41 Correlation, Analysis, and Conclusion 42 Certificate ofAppraiser 44 Section 1 i - ildekndum 45 Zoning Information 45 lOsume 46 1 The gteaf Estate Consultants 118A'. East five. Tayettevilie, Ar. 72701 479-442-0762 November 6, 2009 Ms Holly Jones, City Land Agent City of Fayetteville 113 W. Mountain • Fayetteville, Ar 72701 RE: Appraisal Services Dear Ms Jones: City of Fayetteville Parking Lot at Rock and Block Fayetteville, Ar 72701 In compliance with your request and to determine the Market Value of thc above captioned property, I hereby certify that I have personally inspected thc property and made a survey of matters pertinent to the estimation of its value. The subject property was inspected by the appraiser on October 20. 2009. The intended use is to determine the feasibility of a purchase of the aforementioned property by the City of Fayetteville. I further certify that I have no interest present or contemplated in the property under appraisement, and that my fee was not contingent upon the value estimate reported. The opinions set forth in this letter are stated as of November 6. 2009. The following narrative appraisal report contains the data gathered in my 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 report is considered a complete summary appraisal. This appraisal is based upon information gathered by the appraiser from the subject owner, public records, and other reliable sources, and upon an inspection of the subject property and neighborhood. In developing the appraisal approaches used, data was collected from the Real Estate Consultantsoffice files and courthouse records. The appraiser has applied the Market Data, Cost and Income Approaches in this appraisal. This report has been prepared for the exclusive benefit of the City of Fayetteville. This report can only be relied upon by the client. Based upon my inspection of the subject property and the investigation and analysis can-ied out in this report, it is myconsidered opinion that the Market Value of the subject property as of October 20. 2009, and subject to the assumptions and limiting conditions set forth in the body of this report, is as follows: THREE HUNDRED AND EIGHTY THOUSAND DOLLARS ($380,000) Respectfully submitted, a.- 1.141N. MO. 0 4.4 Mark A. Risk GAA State Certified General Appraiser # CG0202 2 Property: County: Tamer #(s) Section 1— T.:..tecutive Summit), Salient Ruts et Conclusions 64 Space Parking Lot at Corner of Block and Rock Streets in Downtown Fayetteville Washington 765-02098-000 Tee Owner Rock Street Parking, LLC Subject Location: Block Ave and Rock Street - Fayetteville, AR 72701 9daiGngJddress: 231 E Dickson — Fayetteville, AR 72701 Estate Appraised: Fee Simple Size: Approximately 134 x 183 ft Level 1 Lot: 88 x 123 if Level 2 Lot: 62 x 124 ft Effective Coate: October 20, 2009 - The Date of Inspection Vtilities: All Municipal Utilities Are Available Zoning: Downtown General Hignest and Best `Use: Mixed Use Development Vatue Indications: Cost Approach $367,000 Market Data Approach $409,000 Income Approach $367,000 Tina( Estimate of alarkft 1/due: $380,000 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. 3 Subject Location Map 11.104 r piex 614 Pl.tz 4.4e.;toi_ lappingL tn1 Sito N karo,tar.ikFd C3) W Dicksort St UtliverStIy" 31 Arkansas I- If .1 • • -; 01 ryp:Irv I ktt-ir‘testElm of Trip 0711f k Eir4,:firften contEt1,..n. N Schs-sru Ave 7-7-x [:3 E--.ve,yr • "14E: NorTh it Lafaywto Coyetteville Xi 14(4' '4. 601 St JIRO W'EittE E bt Fayette...Elle Natickrtal C::3 Cerneleti x- FEitrvi .-•4•2' Mem( -. Ceme .4) () f flunisvilbe Rri ( g2009 Google Map data a2009 Goog& 4 Subject Pictures Subject Site Lipper Level Looking South Interior of Subject Site Upper Level Looking North Subject Pictures Lower Level ofSubject Lookin_z East Railing and Stairs ofSubject Looking North Su6ject Pictures Street Scene -- Rock Street Looking West (Subject Site on the Lett) Street Scene Rock Street Lookin2 Fast (Subject Site on the Right) 7 Subject Pictures Street Scene- Block Avenue Lookini4 South (Subject Property on .eit ) Street Scene- Block Avenue Looking North (Subject Property on Right) Property kfrntfication The property under appraisement is an existing bi-level, 64 space parking lot at the southeast comer of the intersection of Block Ave and Rock St in Downtown Fayetteville, Washington County, Arkansas. The property is owned by Rock Street Parking, LLC.. It has been commonly referred to as the Bank of America Parking Lot. Le,gat Description A part of Block 41, in the Original Town (now City) of Fayetteville, Arkansas, as shown on plat of record in plat book 4, at page 3 , plat records of Washington County, Arkansas, being more particularly described as follows: Beginning at the NW comer of said Block 41, said point being an existing iron; thence S 89°41'51" E, along the North line of said Block 41, 134.00 feet to an existing iron; thence S 00°30'11" W, 183.22 feet (record 184.00 feet) to an existing iron; thence N 89°20'27" W, 134.00 feet to an existing iron on the West line of said Block 41; thence N 00°30'11" E, 182.32 feet (record 184.00 feet) to the point of beginning. Appraisal' Inspection Comments Date: October 20, 2009 Inspection Notes: Mark Risk visually inspected the subject land on the above date. The inspection consisted of a walking tour of the property with an assistant. Owner contact: WichariAkander 9 Section - Appraisal ftemises Marift Value Defined The Appraisal Foundation defines market value as follows: "The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated. 2. Both parties are well informed or well advised, and acting in what he considers his own best interest. 3. A reasonable time is allowed for exposure in the open market. 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto. 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Definition cf Special' Turpose Property The Appraisal Foundation defines a Special Purpose Property as follows: "A limited -market property with unique physical design, special construction materials, or layout that restricts its utility to the use for which it was built. Also called special design property." The subject property can be considered to be a special purpose property. 10