HomeMy WebLinkAboutMinutes 11/10/2005 pORTANGELgS: . . CITY COUNCIL SPECIAL MEETING
WASHINGTON, U.S.A.
November 10, 2005
I. CALL TO ORDER - SPECIAL MEETING: ~: ~7 0
II. ROLL CALL:
Members Present:
Mayor Headrick ~
Councilmember Braun
Councilmember Erickson ~
Councilmember Munro
Councilmember Pittis
Councilmember Rogers /~ ~'
Councilmember Williams
Staff Present: / Other Staff Present:
Manager Madsen
Attorney Bloor /~
Clerk Upton
G. Cutler - -
D. McKeen -- ~
T. Riepe ~ ' ~
Y. Ziomkowski ~
m. PLEDGE OF ALLEGIANCE:
Led by:
pORT __NGELES CITY COUNCIL SPECIAL MEETING
w A s H, N ~, o., o. s. ^. Attendance Roster
DATE OF MEETING: November 10, 2005
LOCATION: City Council Chambers
FiND1NGS OF THE CITY COUNCIL
1. The City has an opportunity to purchase real property on the terms and conditions set forth
in the Real Property Purchase and Sale Agreement.
2. The negotiated price for the property is $1.2 million. The Seller believes that the fair market
value of the property is $1.5 million. The City has an appraisal of the property that shows the
property value to be $1 million based on an income method of valuation. The income method of
property valuation requires several assumptions regarding income, interest rates, and other variables.
The City recognizes that these variables are not fixed and certain. They are assumptions, and there
is a range of reasonable assumptions. Those reasonable assumptions show a property value between
$1 million and $1.5 million.
3. The property is adjacent to the Gateway Project as currently designed and can be incorporated
into the Gateway Project in a manner that will be beneficial to the overall project.
4. The City is a sponsor of the Gateway Project. It is in the best interests of the City to assure
that the Gateway Project proceeds in the most expedient and economical fashion reasonable.
5. The Gateway Project is currently being delayed by litigation which, in part, involves the
sellers of the land that is the subject of the Agreement of Purchase and Sale of Real Property. If the
litigation continues the project will be delayed, at a minimum, 18 months. Due to the war in Iraq
and the hurricane damage this year in the southeastern United States and the high cost of petroleum,
the costs of construction materials and supplies, and the overall costs of construction projects, are
escalating rapidly. The City has noted this rapid increase in its own recent bids, and it is anticipated
that construction costs will continue to escalate rapidly for the foreseeable future. Because of these
factors, if the litigation that is currently delaying the Gateway Project continues, it will result in an
increase in costs to the overall project estimated to be $400,000. Additionally, the City has been
notified it will loose TIB funding if the project is delayed beyond June 2006.
6. Purchase of this property by the City will benefit the Gateway Project. It will also have the
effect of allowing the pending litigation to be resolved quickly, and thus saving the project and the
City the costs that would otherwise be incurred as a result of delay.
7. All or a portion of the cost of the purchase may possibly be made a project cost, thus reducing
the direct expense of the City.
8. The flexibility that will be added to the Gateway Project as a result of the purchase of this
property will allow a project which may be more acceptable to local residents and businesses.
9. The flexibility to the project added by the purchase of this property may allow a reduction
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in scope of the Gateway Project, which may result in estimated savings of $300,000 - $500,000.
10. The City will receive income from the property.
11. The purchase of this property is anticipated to eliminate a significant amount of dissension
and contention relating to the project.
12. The City Council finds and declares that there is an immediate and beneficial public use for
this property, that ownership of the property by the City will benefit the citizens and business of the
City, and that the property is necessary for the City to fulfill its public functions and responsibilities.
Adopted by the City Council at its meeting of November 10, 2005.
Becky J. Up~iC~y Cler~
G:\GROUP\CLERKh"4iichehCouncil Findings for Purchase.111005.wpd
November 10, 2005
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