TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Public Works |
Aaron Bert |
425-556-2786 |
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
David Amble |
Real Property Manager |
TITLE:
title
Approval of Authorization for Acquisition of the Property Located at 18459 NE 76th St, Redmond, WA, from DCC Propane
OVERVIEW STATEMENT:
recommendation
As part of the City’s project to redesign and construct the Maintenance and Operations Center (MOC), the City is pursuing acquisition of Pacer Propane’s facility at 18459 NE 76th Street. This property is in close proximity to the current MOC facility and can be used for a variety of functions in support of MOC operations including construction staging, fleet maintenance, and supplemental off-site vehicle parking/storage. The City has been in negotiations with the property owner and has arrived at terms to move forward with the acquisition.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
MOC Master Plan
• Required:
N/A
• Council Request:
N/A
• Other Key Facts:
Council’s approval meets the terms of the negotiated Purchase and Sale Agreement (PSA).
OUTCOMES:
With Council’s approval, the City will proceed with the following for property acquisition:
• The City will execute a Purchase and Sale Agreement (PSA)
• Deposit of earnest money
• Completion of environmental assessment due diligence
• Closing process
The PSA includes a cancelation clause to terminate the agreement, if needed, based on the findings of the due diligence. Earnest money would also be refunded.
This property acquisition provides the Public Works Department flexibility for meeting the goals and objectives of the MOC reconstruction and offers the City additional real estate capacity for other property needs on a temporary or long-term basis. If this property is not needed by the City in the future, the City can surplus the property and place it on the market for sale and purchase by other entities.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
$3,600,000.00, less $150,000.00 in earnest money, plus closing costs
Approved in current biennial budget: ☐ Yes ☐ No ☒ N/A
Budget Offer Number:
CIP
Budget Priority:
Strategic and Responsive
Vibrant and Connected
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
• General Fund
• Real Estate Excise Tax
• Stormwater CIP
• Water CIP
• Wastewater CIP
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
N/A |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
If the City does not move forward in a timely manner with the acquisition of the property at 18459 NE 76th St, Redmond, WA, it could be purchased by another buyer.
ANTICIPATED RESULT IF NOT APPROVED:
The City would not be able to purchase property close to the MOC property.
ATTACHMENTS:
Attachment A: Draft Purchase and Sale Agreement