HomeMy WebLinkAbout6A3g (3�
Sou Tx e
Department of
Community Investment
foss
Memorandum
Wednesday, January 23, 2013
TO: Redevelopment Commission
FROM: Don Inks
SUBJECT: Sale of Parking Lotto 227 Main Street Associates, LP (Part of 217 S. Main St.)
227 Main Street Associates has requested to purchase a small portion of Redevelopment's lot at the
southwest corner of Main & Jefferson. This portion is a surface parking lot at the south end of our
site (see attached map). They have offered $15,000 for the 5,445 square foot site. We believe this
price is reasonable if 227 Main Street Associates agrees to pay for all costs related to the
transaction, so that the net to the Redevelopment Commission is $15,000.
Appraisals from December 2002 had valued the property at $5.95 per square foot. We believe this
pre - recession value has declined. A May 2012 appraisal of properly at the southeast corner of
Lafayette & Western (adjacent to JPR, formerly Whightman Petrie) showed a value of $5.00 per
square foot. This property is a block away from the property under consideration for sale. In
addition, an August 2009 appraisal of our property at the southeast corner of Main & Western
showed a value of $2.37 per square foot. Both of these more recent appraisals are for sites within
one and a half blocks of the parking lot we are considering for sale. Both of these recent appraisal
sites were for corner parcels, typically having higher values than interior lots such as the parking lot
under consideration for sale.
Ordinarily, Redevelopment pays the costs related to land sale transactions, including updated
appraisals if necessary. In this case, we have estimated those costs to be about $6,300 to $9,000.
Staff is recommending we forego new appraisals, saving $2,000 to $3,000, and that 227 Main
Street Associates pay all other costs to close and complete this transaction, including but not limited
to title work, title insurance, subdivision and closing fees.
The net sale price of $15,000, plus savings related to foregoing appraisals along with savings
related to the purchaser paying for other closing and transaction costs, is equivalent to a per square
foot price of $3.90 to $4.40. We believe this is a reasonable price that is within the range of other
properties more recently appraised and recommend Redevelopment Commission approval.
-- PROVED
SOUTH
.n
1
v
d
D
E
, cog
u lout � o�r
�I
r.
WAVOMX V V.`
--
•
• {
uosaa aE
. Q, HL
seleioossy - }S uiew -S LZZ
E
, cog
u lout � o�r
�I
r.
WAVOMX V V.`
--
•
• {
uosaa aE
. Q, HL
seleioossy - }S uiew -S LZZ