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City staff seek council direction to proceed with $2.1M letter of intent for public works and parks expansion site
Summary
City staff and a real-estate advisor told the council they have a letter of intent to buy a 40th Avenue parcel for $2.1 million to co-locate public works and parks shops and requested authorization to continue due diligence, including an environmental Phase I study and a boundary survey.
City staff told council they have entered a letter of intent to buy a parcel south of the existing public works shop (near 40th Avenue and Parfet) for $2,100,000 and are seeking direction to proceed with standard due diligence. Patrick Goff said the citys facilities master plan identified co-locating public works and parks shops as a priority because both departments need more interior and exterior space; a nearby 40th Avenue parcel was available and would allow better access and staging from the arterial road.
Esther Kettering of Pinnacle Real Estate Advisors told council the property is on the market, the seller will be required to vacate and remove personal property prior to closing, and the city has proposed contractual protections (including an escrow holdback if personal property is not removed). The most recent appraisal on file is $2,200,000; the seller had a prior contract for roughly $3,000,000 that fell through. Kettering said Terracon has provided a proposal to perform a Phase I environmental assessment; if Phase I indicates potential contamination, the city could pursue a Phase II investigation and, if necessary, negotiate remediation or adjust price.
Dan Byers, the city's facilities and fleet manager, told council that the parcel would provide roughly the outdoor and indoor space public works and parks need and would allow vehicle access from 40th Avenue rather than routing large equipment through neighborhood streets. Councilors and staff discussed boundary surveys, environmental testing and timing; staff said the purchase contract would include a 60-day inspection period during which the city may terminate for any reason and require the seller to clear tenants and personal property within an agreed period before closing.
Councilors discussed potential funding sources, including Urban Renewal Authority participation, and asked staff to return to council with a finalized purchase-and-sale agreement for action on the July 14 meeting. No final contract was executed at the study session; council signaled support to continue due diligence and return with a recommended contract.
