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HomeMy WebLinkAboutFS 2007-06-04 Item 2A - Resolution - Surplus 7210 / 7220 South 180th Street PropertyTo: INFORMATION MEMORANDUM Mayor Steven M. Mullet City Councilmembers City Administrator Rhonda Berry From: Kevin A. Fuhrer, Finance Director a Date: May 29, 2007 Subject: Declaration of Surplus Property 7210 S. 180 and 7220 S. 180 ISSUE: Declaring the properties located at 7210 and 7220 S. 1 80 Street surplus to the City's needs. BACKGROUND: In 2001 the City acquired the above referenced properties in association with the S. 180 Street Underpass Capital Improvement Project. The 7210 and 7220 properties are commonly referred to as the Candle Shop and Crystal Springs Warehouse respectively. The project management team utilized office space in the warehouse throughout the construction term. Both properties have since been underutilized DISCUSSION: The Candle Shop is in a deteriorated state and should likely be demolished. The Crystal Springs Warehouse, while admittedly in a better condition, does show signs of moderate earthquake damage stemming from the Nisqually seismic event. In addition, it was necessary this past winter to perform repairs on the flat roof. Furthermore, administration has evaluated the feasibility of utilizing one or both of the properties, however it was determined that the associated repairs and service modifications necessary for City use are cost prohibitive. Moreover, during the past 18 months a number of outside parties have expressed interest in purchasing the properties. In March 2007, the City commissioned the services of an appraiser to ascertain a fair market valuation. The appraisal totaled $480,000 in a current "as is" condition. Given the physical layout of the properties and ingress /egress considerations, the parcels were commonly valued. The procedures for a sale of City property are codified in Tukwila Municipal Code (TMC) Chapter 2.64. The salient points of the TMC are: Property Appraisal Council Authorization To Sell At A Minimum Price City Clerk Publishes A Call For Bids At Least (5) Calendar Days Before Final Date For Competitive Bid Submission. RECOMMENDATION: Given the condition of the properties, the absence of a pressing City need, and the added benefit of restoring the property valuation to the tax rolls, it is recommended that the Council declare the property surplus and authorize the Mayor to carry out a sale of the property within the parameters of TMC Chapter 2.64 and at a minimum bid level of 480,000. TUKWILA MUNICIPAL CODE 2.60.080 Common Service Area Any area actually served by any two or more franchised electric public utilities on January 1, 1962, shall be and remain the common service area of both unless or until such service shall be discontinued by any such utility for 30 days or more, in which case such discontinuing utility shall thereafter be deemed to be excluded from servicing such area. r, 9 2.o0.u0 Boundaries The boundaries of service areas shall in every instance follow the exterior property line of the consumer actually served. In the event of any dispute among utilities, the location and boundary of service areas shall be investigated by the City supervisor and reported to the City Council. The Council shall hear the supervisor's report together with any evidence submitted to the supervisor by any interested person and shall, by ordinance, determine and locate such boundary. 2.60.100 Common Service Area Excluded Utility Should any common service area of two or more electric public utilities exist wherein any such utility shall be excluded as provided in TMC 2.60.080, then such excluded utility shall, within 30 days of such exclusion, abate and remove any electrical equipment or facilities which serve only the area from which it was thereby excluded, it being the purpose of this provision that hazards arising from the continuation of such facilities be abated as soon as is reasonable. Page 2 34 Sections: 2.64.010 Authorization Effecting Transfer of Property Conveyance 2.64.020 Minimum Price Set 2.64.030 Call for Bids Exceptions 2.64.040 Notice of Intent to Sell 2.64.050 Opening Bids Rejection 2.64.060 Receipt of Acceptable Bid Preparation of Instruments 2.64.070 Unacceptable Bids Negotiation of Bids 2.64.010 Authorization Effecting Transfer of Property Conveyance Whenever it shall appear to the Mayor and the City Council that it is for the best interests of the City and the people thereof that any lot, parcel, or portion of such lot or parcels, the property, whether real, personal, or mixed, belonging to the City, should be sold, it shall be the duty of the Council to authorize a sale of such property acting by and through the Mayor of the City, to cause to be effected the conveyance as necessary to transfer the property, after the same has been appraised, and under the limitations and restrictions and in the manner hereinafter provided. 2.64.020 Minimum Price Set Subsequent to receipt of an assessment of the value of the property, the Council shall fix a minimum price at which such may be sold. No bid shall be deemed acceptable that does not meet the minimum price fixed by the Council. 2.64.030 Cal! for Bids Exceptions The City Clerk shall cause a call for bids to be published relating to such property, except when: 1. Selling to a governmental agency in the manner provided in the laws of the State of Washington; 2. The value of the property to be sold is less than $500.00; and 3. The Council setting forth the facts by resolution has declared an emergency to exist. Printed Janary 2007 2.54.040 Notice of Intent to Sell The City Clerk shall give notice of the City's intention to make such sale by one publication in the official newspaper of the City; the City Clerk shall also cause notice of the City's intention to make such sales to be posted on the public bulletin board in a conspicuous place in the City Hall of Tukwila; both posting and the date of publication must be at least five calendar days before the final date for submission of such competitive bids. 2.64.050 Opening Bids Rejection The bid shall be opened in public at the time and place stated in such publication. The City Council may reject any and all bids, or the bid for any one or more of the parcels, real or personal, included in the aforesaid call for bids. 2.64.060 Receipt of Acceptable Bid Preparation of instruments Upon receipt of an acceptable bid relating to the property, the Council shall authorize the Mayor to cause necessary instruments to be prepared, and further authorizes the Mayor to execute such instruments. 2.`4.0 70 Unacceptable Bids Negotiation of Bids In the event no bids, or no satisfactory bids, have been received pursuant to the method outlined in this chapter, or in the event the value of the property is less than $500.00, then the Mayor and City Council may receive or negotiate bids relative to the sale of such property. Printed January 2007 TITLE 2 ADMINISTRATION AND PERSONNEL Sections: 2.68.005 Court Established 2.68.006 Court Seal 2.68.010 Jurisdiction 2.68.020 Judges Appointment Qualifications 2.68.025 Salaries Costs 2.68.027 Removal of Judge 2.68.030 Municipal Court Employees 2.68.040 Judges Pro Tem Court Commissioners 2.68.045 Judicial Vacancy 2.68.050 Municipal Court Hours 2.68.060 Revenue Deposit 2.68.070 Sentences 2.68.075 Deferral and Suspension of Sentences 2.68.080 Rules of Pleading Practice and Procedure 2.68.085 Pleadings, Practice and Procedure 2.68.090 Complaint Swearing Examination Filing 2.68.095 Complaints 2.68.100 Complaint Oath Requirement Penalty 2.68.110 Complaint Amendments 2.68.115 Criminal Process 2.68.120 Vrrarrant Issuance 2.68.130 Warrant Form and Contents 2.68.140 Warrant Execution Procedure 2.68.150 Warrant Return Unexecuted 2.68.160 Warrant Arrest Procedure 2.68.170 Bail 2.68.180 Bail Bonds 2.68.190 Justification of Sureties Bond Approval 2.68.200 Arraignment Defendant's Rights 2.68.210 Pleas 2.68.220 Continuances 2.68.230 Sentence Decision 2.68.240 Civil Jury Trials 2.68.250 Sentence Delay Prohibited New Bail 2.68.270 Conviction of Corporation 2.68.310 Clerical Mistakes, Errors Correction 2.68.320 Trial Presence of Defendant and Counsel 2.68.360 Appeal Bond Disposition of Bail 2.68.370 Appeal to Superior Court Record on Review Appeal to Supreme Court 2.68.380 Superior Court Judgment Notice 2.68.390 Traffic Cases Complaint and Citation 2.68.400 Case Transfers 2.68.420 Judges Bonds 2.68.430 Public Defender Appointment 2.68.440 Public Defender Statement for Services 2.68.450 Public Defender Payment 2.68.470 Savings Page 2 -35 March 16, 2007 City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 Attn: Kevin A. Fuhrer RE: Tukwila Industrial Properties 7210 7220 S 180th Street Tukwila, Washington Dear Mr. Fuhrer: At the request and authorization of the City of Tukwila, we have prepared an appraisal of the above referenced properties, which are described in the attached report. As requested, we have estimated the market value of the fee simple interest in the subject real estate, in the property's current "as is" condition We inspected the subject property on March 14, 2007. This report has been prepared in conformance with the current Uniform Standards of Professional Appraisal Practice, as formulated by the Appraisal Standards Board of the Appraisal Foundation. A copy of the contract letter authorizing this engagement is presented as the first exhibit in the Addendum to this report. This is a complete appraisal and is presented as a summary report and complies with the reporting requirements of USPAP for such reports. As a result of our investigation and analysis, we have concluded that the market value of the fee simple interest in the existing subject real estate, in its current "as is" condition, subject to the limiting conditions and assumptions contained herein, as of March 16, 2007, is: Sincerely, FOUR HUNDRED EIGHTY THOUSAND DOLLARS $480,000 Marc D. Therrien, MAI State Certification No. 1100684 The THERRIEN COMPANY, Inc. Commercial Real Estate Valuation Consulting t P on E tate Certificatiori No. 10000707 12020 113th Avenue NE Building C Suite 290 Kirkland, WA 98034 P 425 821 2050 F 425 821 3673 E marc @therrienco.com The Therrien Company, Inc. Ref. 07 -014 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DECLARING THE REAL PROPERTY LOCATED AT 7210 S. 180TH STREET AND 7220 S. 180TH STREET TO BE SURPLUS, AND AUTHORIZING ITS SALE. WHEREAS, the City of Tukwila owns certain real property, legally described herein, that is surplus to the City's needs; and WHEREAS, TMC Chapter 2.64 provides for disposition of surplus property; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Declaration of Surplus. Two parcels of real property as legally described below, belonging to the City of Tukwila, are hereby declared to be surplus: 7210 S. 180th Street, Parcel #3623049009, is legally described as: 3623049 PORTION OF NE 1/4 OF NW 1/4 BAAP 30 FT N 735.75 Fr W OF NE CORNER OF HENRY ADAMS DONATION LAND CLAIM NO 43, THEN NORTH 120 FEET, THEN E PARALLEL TO SAID NORTH LINE 66 FEET, THEN SOUTH 120 FEET, THEN WEST 66 FEET TO POB 7220 S. 180th Street, Parcel #3623049059, is legally described as: 362304 59 PORTION OF NE 1/4 BEGIN 669.75 F1 W 30 F 1' N OF NE CORNER OF HENRY ADAMS DONATION CLAIM NO 43 OF SECTION 36 -23- 04, THEN N 01 -39 -00 E 120 FT, THEN S 88 -21 -00 E TO W LINE OF R/W OF SEA'F1'LE- TACOMA INTERURBAN RAILWAY, PUGET SOUND ELECTRIC RAILWAY, THEN S ALONG SAID W LINE TAP ON LINE 30 FT N PLW N LINE OF SAID HENRY ADAMS DONATION CLAIM NO 43, THEN WLY ALONG SAID PLL LINE TO POB --CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT OR LOT CONSOLIDATION APPLICATION NO L95 -0065 RECORDING NO 9605300596 Section 2. Sale of Surplus Property. The Mayor is hereby authorized to initiate the sale of the real property, as described in Section 1, in the manner as set forth in Tukwila Municipal Code Chapter 2.64. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2007. ATTEST/ AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the. City Attorney Verna Griffin, Council President Filed with the City Clerk Passed by the City Council: Resolution Number C:\Documents and Settings\All Users\ Desktop\ Kell y\MSDATA\Resolutions4Surplus Property S. 180th St.doc MD:ksn 5/31/2007 Page 1 of 1