Agenda Item Title:
Title
Administration recommending the purchase of the Richardson Property for $2.3 million.
Body
Presenter:
Shane Pace
Description/Background:
The City has been negotiating with the Richardson and Evans family for the past year to purchase ten acres at the mouth of Little Cottonwood Canyon. Recently, the City signed a Realestate Purchase Contract (REPC) with the families for $2.3 million. An appraisal was completed on the property for $1.535 Million last fall. The Richardson family started at an asking price of $4 million and the City countered with a price of $2 million. After a number of counter offers, and offers from other entities, both parties settled on $2.3 million. There are a number of stipulations that are part of the REPC that is attached. Utah State law indicates that when a City purchases a property over the asking price, the City should detail the reasons why and hold a public hearing to receive feedback from residents about the purchase. Attached is a memorandum detailing why the City believes this purchase is appropriate. Also attached is the appraisal of the property. One concern about the property is potential contamination because of materials stored on the property. A phase one environmental study is also attached for review which details the potential contamination. Any surface contamination found to date has been "de minimis in nature". However, more study will need to occur when the materials stored on site are removed.
Recommended Action and/or Suggested Motion:
Recommendation
Motion to adopt resolution 18-03C approving the purchase of the Richardson property.