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g (3� <br />Sou Tx e <br />Department of <br />Community Investment <br />foss <br />Memorandum <br />Wednesday, January 23, 2013 <br />TO: Redevelopment Commission <br />FROM: Don Inks <br />SUBJECT: Sale of Parking Lotto 227 Main Street Associates, LP (Part of 217 S. Main St.) <br />227 Main Street Associates has requested to purchase a small portion of Redevelopment's lot at the <br />southwest corner of Main & Jefferson. This portion is a surface parking lot at the south end of our <br />site (see attached map). They have offered $15,000 for the 5,445 square foot site. We believe this <br />price is reasonable if 227 Main Street Associates agrees to pay for all costs related to the <br />transaction, so that the net to the Redevelopment Commission is $15,000. <br />Appraisals from December 2002 had valued the property at $5.95 per square foot. We believe this <br />pre - recession value has declined. A May 2012 appraisal of properly at the southeast corner of <br />Lafayette & Western (adjacent to JPR, formerly Whightman Petrie) showed a value of $5.00 per <br />square foot. This property is a block away from the property under consideration for sale. In <br />addition, an August 2009 appraisal of our property at the southeast corner of Main & Western <br />showed a value of $2.37 per square foot. Both of these more recent appraisals are for sites within <br />one and a half blocks of the parking lot we are considering for sale. Both of these recent appraisal <br />sites were for corner parcels, typically having higher values than interior lots such as the parking lot <br />under consideration for sale. <br />Ordinarily, Redevelopment pays the costs related to land sale transactions, including updated <br />appraisals if necessary. In this case, we have estimated those costs to be about $6,300 to $9,000. <br />Staff is recommending we forego new appraisals, saving $2,000 to $3,000, and that 227 Main <br />Street Associates pay all other costs to close and complete this transaction, including but not limited <br />to title work, title insurance, subdivision and closing fees. <br />The net sale price of $15,000, plus savings related to foregoing appraisals along with savings <br />related to the purchaser paying for other closing and transaction costs, is equivalent to a per square <br />foot price of $3.90 to $4.40. We believe this is a reasonable price that is within the range of other <br />properties more recently appraised and recommend Redevelopment Commission approval. <br />-- PROVED <br />SOUTH <br />