COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jeff Thuneman, Development Services Director
SUBJECT:Title
Adopt Resolution No. 24-3768 Approving and Authorizing Execution of Instruments Necessary to Vacate and Convey Parcel K, Approximately 5,000 Square Feet of Roadway, Located Between Lots 5 and 6 of Block 1, Tract 2226, to the Owner of Adjacent Lot 6 (Chris Gilbert)
Body
FUNDING SOURCE:
N/A
PURPOSE:
To authorize the vacation and sale of City-owned Tract 2226, Block 1, Parcel K, a 250ft x 20 ft parcel located between Lots 5 and 6 of Block 1, to the owner of adjacent Lot 6 of Block 1.
BACKGROUND:
In May of 2024, the owner of an adjacent commercial property, Lot 6 of Block 1 of Tract 2226, submitted an application to City staff to purchase a 20-foot by 250-foot City owned parcel adjacent to their property. City-owned parcels such as Parcel K are located throughout the city, typically found in parking-in-common areas, to be developed as a walkway to enhance parking-in-common areas and allowing pedestrian access to the alley. Upon review, staff determined the property is no longer necessary for public use and could be sold. The utility companies were also notified to determine if the property is needed to provide services.
By applying a per square-foot formula of $10.00 per square foot, a value of $50,000 has been assessed to this property. Separate closing costs (not included in the purchase price) will be paid directly to the title company by the purchaser. Typically, the property would be split into identical 10 x 250-foot properties and each piece sold to the adjacent property owners. If one of the owners does not express interest, both parcels will be offered to the other adjacent owner.
Staff sent a letter requesting a document expressing interest in the property for $25,000 for each half of the parcel and a written response was received by the owner of Lot 5 declining the opportunity to purchase half. Therefore, the entire property is being offered to the owner of Lot 6.
If the City Council authorizes the vacation and sale of the property, deeds will be created, and the purchasers will take title and tie their portion of Parcel K to the adjoining Lot 6 property.
COMMUNITY IMPACT:
N/A
FISCAL IMPACT:
Proceeds from the sale in the amount of $50,000 to be placed in the City’s Property Acquisition Fund. Future improvements to the property will likely increase the assessed valuation, and the City will receive additional property tax revenue.
ATTACHMENTS:
Resolution No. 24-3768
Exhibit A
SUGGESTED MOTION::Recommended Action
I move to adopt Resolution No. 24-3768 approving and authorizing the execution of instruments necessary to vacate and convey Parcel K, approximately 5,000 square feet of roadway, located between Lots 5 and 6 of Block 1, Tract 2226, to the owner of adjacent Lot 6.