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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Superintendent of Facilities
Chris Kukulski, City Manager
SUBJECT: Purchase of property at 214 East Lamme
MEETING DATE: November 27, 2006
BACKGROUND: In early September the property immediately west of the old library was
placed on the market by the owners. Staff initiated a buy-sell on the property to secure a location
for future expansion now that the city intends to re-use the old library property.
After multiple counter offers on the property an agreed upon price of $430,000 was reached, the
original listing price was $469,900. The appraisal came in at $405,000. The property was a
difficult one to appraise because of a lack of comparable sales and the commercial zoning on an
otherwise residential use.
The property is zoned B-3 and was listed as having two housing units on the property. During
the appraisal it was determined that the converted garage on the south end of the property did not
meet the definition of having a functioning kitchen so the property was appraised as having a
single residence with an accessory building.
At this time the non-refundable earnest money has been paid. The appraisal is complete and a
Phase I Environmental Assessment of the property has been conducted. The only issues from the
environmental assessment show possible lead paint, because of the age of the structure and
composite siding that generally has an asbestos content. This report is available at the clerks
office.
RECOMMENDATION: The buy-sell has a provision which allows the current owners to
remain in the property through the end of January. The City would take possession at the
beginning of February. Staff recommends the purchase of the property as a future expansion to
meet the long-term needs of the city.
FISCAL EFFECTS: In the FY07 budget the full balance of the Special Projects (Valley
Unit) fund was appropriated, totaling $740,000. At the time, it was anticipated that a remodel of
both the Old Library and the existing City Hall would be paid for from the fund. With the
purchase of this property, we will have $310,000 available for future remodeling.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
James Goehrung Chris A. Kukulski, City Manager
Superintendent of Facilities
Attachments: Counter Offer Agreement
Uniform Residential Appraisal Report
Report compiled on November 22, 2006