TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
title
Surplus property sale - 1660 Snowbird Court NW
Ward(s): Ward 8
Councilor(s): Lewis
Neighborhood(s): WSNA
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ISSUE:
Shall the City Council approve the proposed minimum terms for the sale of surplus property located at 1660 Snowbird Court NW?
RECOMMENDATION:
recommendation
Approve the proposed minimum terms for the sale of surplus property located at 1660 Snowbird Ct. NW.
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SUMMARY AND BACKGROUND:
The City of Salem acquired the property located at 1660 Snowbird Ct. NW (tax lot 073W16CC01200) (Property) (Attachment 1) in West Salem on October 9, 2003, for $110,000. The Property was acquired to provide pedestrian access to the proposed Mountain View Park. Due to the inclusion of a large City reservoir on the park site, the park was never developed and the site has been removed from consideration as a park. Since the site is no longer proposed for park use, the adjacent lot has been declared surplus by the Public Works Director and City Manager and can be sold to the public.
FACTS AND FINDINGS:
The Property is a large, single-family lot located in the West Hills Estates subdivision. The nearly half-acre (21,600 square feet) lot is located at the end of a cul-de-sac and is one of only three undeveloped lots in the subdivision, one of which is also owned by the City for access to Chandler Nature Park.
Staff solicited an appraisal for the Property which estimated a value of $115,000. The City’s real estate policy states that surplus property shall be disposed of by any of the five following means:
1. Fixed price competition
2. Competition/Negotiation combination
3. Sealed bids
4. Public auction
5. Exchange of real estate
Staff recommends disposing of the property through a sealed bid process. This method will allow the market to determine the sales price and the City to receive the highest dollar amount.
Other key factors recommended by staff include:
1. Minimum bid of $100,000
2. 60-day marketing time
3. 10% deposit included with all bids
4. 3% commission to a broker representing the selected purchaser (if applicable)
5. Direct marketing to area real estate agents
6. Listing the property with the local multiple listing service
Once the winning bidder has been selected, staff will bring a Purchase and Sale Agreement before Council for approval. The property was purchased with Park System Development Charge funds and proceeds from the sale will be returned to the same fund.
Clint Dameron
Real Property Services Manager
Attachments:
1. Location Map
09/02/2016