Loading...
HomeMy WebLinkAbout07/18/2017 10 Property Acquisition by Power of Eminent Domain; SOZO Sports; YMCA; Aquatic CenterBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 Item No. 10. For Meeting of: July 18, 2017 ITEM TITLE: Next steps regarding purchase and sale agreement of Congdon Parcel No. 181334-42002 SUBMITTED BY: Jeff Cutter, City Attorney SUMMARY EXPLANATION: The City Council recently authorized a purchase and sale agreement for the intended purpose of purchasing Yakima County parcel number 181334-42002 from Congdon Development Company, LLC for the purpose of satisfying two separate partnership commitments. The first commitment the City has is to provide funding toward the purchase of additional property that would lend support to the SOZO sports complex being developed south of the Yakima Air Terminal. The property would be developed by SOZO as a public park and recreation facility to serve the needs of local residents and those utilizing the sports complex. The second commitment is with the YMCA of Yakima, to provide a replacement property for consideration by RCO and NPS as a replacement for Chesterley Park property being considered for the development of a new aquatic center and fitness facility. To meet these commitments the City has entered a Purchase and Sale Agreement with Congdon for the purchase of the desired 32 acre parcel lying just north of and adjacent to the SOZO complex. One of the seller's contingencies in the PSA is that the land remain in Open Space after the City purchases the property. The City has recently learned that the County Assessor will not allow the property to be held as Open Space by the City, which is a non-taxable entity, but rather would require that the seller pay penalty associated with the transfer of the property out of Open Space at the time of the closing of the sale. The seller has indicated that it is not willing to do this, but will rely on the process described in the resolution regarding the property transfer penalty. The City had an important public purpose to be served by the acquisition of this parcel, as explained above. The attached resolution provides direction to the City Manager to use whatever lawful means are available to acquire the parcel, including the exercise of eminent domain if necessary to obtain this property that is important to meeting significant public purposes. Council considered and rejected the proposed resolution at its July 11, 2017, Business meeting. After that discussion, staff was directed to return to the July 18, 2017, Business meeting to discuss options. Staff will be prepared to outline options at this time. ITEM BUDGETED: NA STRATEGIC PRIORITY: Partnership Development APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description 121 Res-SOZO-Congdon PSA -Eminent Domain Upload Date 6/222017 Type Resolution 2 A RESOLUTION 3 RESOLUTION NO. R -2017 - expressing the intent of the City Council to exercise its power of eminent domain to acquire parcel 181334-42002 in the event the seller is not willing to complete the transaction regardless of the open space considerations identified as contingencies in the proffered Purchase and Sale Agreement. WHEREAS, in order to meet its commitment to SOZO Sports of Central Washington to contribute financially toward the purchase of additional property supportive of the SOZO sports complex, as well as its commitment to the YMCA to provide exchange property to satisfy the RCO and NPS requirements as part of developing a public aquatic center at Chesterley Park, the City presented Congdon Development Company LLC (Congdon/seller) with a Purchase and Sale Agreement (PSA) for the proposed purchase of 32 acres of property adjacent to and north of the SOZO sports complex and identified as Yakima County Assessor parcel number 181334- 42002 (property); and WHEREAS, one contingency expressed by the seller in the PSA was that the property would be continued in Open Space land after closing, and subsequently reclassified from Open Space Agriculture to Open Space Open Use; and WHEREAS, the City has been notified by the Closing Agent that the County cannot continue property purchased by the City in Open Space and therefore at the point of purchase by the City the land would be declassified as Open Space Agriculture and the seller would be responsible for a significant tax assessment at closing resulting from the termination of the Open Space classification of the property; and WHEREAS, the seller has indicated that it will not agree to remove the contingency requiring that the property remain in Open Space following a sale and therefore would not consent to the City's purchase without the continued Open Space designation; and WHEREAS, the property subject to the PSA is necessary for the City to meet existing commitments and to accomplish the goals of providing additional public park and recreation use to the residents and visitors to the City and also to meet the City's responsibility to use due diligence to provide the exchange property for the Chesterley Park conversion property that will be displaced by the construction of the YMCA development; and WHEREAS, if the seller is unwilling to agree to the sale of the property without meeting the Open Space contingency the City Council has determined that the purchase of this property is necessary to fulfill an important public purpose and that the Council would enforce its power of eminent domain to acquire the property in question in order to meet the important public purposes the transaction is intended to fulfill; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to use whatever options that may be available and necessary to acquire Congdon parcel number 181334-42002 that is subject to a PSA presently being considered by the Title Company in order to meet the important public purposes intended for the property, up to and including the City's exercise of eminent domain to accomplish that purpose. 4 ADOPTED BY THE CITY COUNCIL this 11th day of July, 2017. Kathy Coffey, Mayor ATTEST: Sonya Claar Tee, City Clerk