HomeMy WebLinkAboutJ1_2 Aug 28 Armory parking adendum Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris A. Kukulski, City Manager
SUBJECT: Schedule Public Hearing for the Potential Sale of the City’s Parking Lot at the
South East Corner of Mendenhall and Willson.
MEETING DATE: August 28, 2006
BACKGROUND: After further review of Ordinance 1658 the City Commission must hold a noticed
Public Hearing in order for the Commission to determine IF a publicly owned piece of property is “no
longer needed.” In addition to the public hearing requirement, the City utilizes “where appropriate” an
appraisal to insure that the public receives fair value out of any bid, auction or direct negotiation sale
process. Section I, 2.05.040 reads as follows, “…the property may be sold by bid, auction with reserve,
or negotiated sale or exchange, subject, where appropriate, to a minimum price established through an
appraisal…” Therefore I believe it would be helpful to this process for the Commission to consider
setting a course of action to be followed IF the property at the south east corner of Mendenhall and
Willson is “no longer needed.”
Because of the property’s proximity to the Armory redevelopment project (contiguous), and because of
the dimensions of both properties, I believe this case warrants the City to directly negotiate with the
owners of the Armory under the conditions outlined by the Parking Commission and me (see original
memo regarding this subject compiled on August 24, 2006), IF the city determines after the public
hearing that the land is no longer needed. The Armory parcel is approx. 137 feet wide and 140 feet deep
and the City’s parcel is approx. 83 feet wide and 140 feet deep; neither by themselves offer much
opportunity for efficient underground or above ground level parking. We dealt with this issue when the
City purchased the Powderhorn parking lot in order to assemble enough contiguous property to build our
parking garage one block east of the property in question. Because parking is a primary concern of the
Parking Commission and has been the focus of most of those concerned about this possible sale, I
believe the Armory redevelopment offers the greatest opportunity to enhance parking. The following
timeline has been created based on the above information.
1. August 31, 2006 - Advertise September 18th Public Hearing to consider the question of IF
the property at Mendenhall and Willson should be sold. (the Chronicle requires 48 hours
notice to advertise a public hearing)
2. September 7, 2006 - Advertise September 18th Public Hearing to consider the question of IF
the property at Mendenhall and Willson should be sold.
3. September 18, 2006 - Hold the Public Hearing regarding the question of IF the property
should be sold. IF the Commission determines that the property is to be sold then they would
authorize the staff to negotiate the necessary documents consistent with Ordinance 1658 with
the Libster Building LLC, Nygard Family LLC.
RECOMMENDATION: Authorize the City Manager to advertise for a public hearing to be held
September 18th to consider sale of the City’s parking lot located on the south east corner of Willson and
Mendenhall.
FISCAL EFFECTS: The sale price is yet to be determined based on an appraised value of the land for
its intended use. Also, the taxes generated by the proposed development would be paid into the City’s
downtown Urban Renewal District. The minimum amount of property taxes will be set in the
development agreement and will be paid by the owner even if the taxable value falls short of the
estimates or the State changes property tax formulas.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________
Chris A. Kukulski, City Manager