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HomeMy WebLinkAboutR-2007-126 Street Vacation CompensationRESOLUTION NO. R-2007- 126 A RESOLUTION Amending the previously adopted policy of the City of Yakima regarding the vacation of public streets or alleys; requiring an independent appraisal if right of way value exceeds Twenty Thousand Dollars ($20,000); authorizing valuation of vacated property by assessed valuation if one hundred ten percent (110%) of assessed value is less than Twenty Thousand Dollars ($20,000); eliminating one hundred percent appraised value recovery for certain property vacations; and repealing City of Yakima Resolution D- 5630. WHEREAS, pursuant to Title 35 of the Revised Code of Washington, Chapter 35.79, the Yakima City Council desires to amend local policy for compensation to the City on the vacation of public streets or alleys; and WHEREAS, after due consideration, the City Council determines it to be in the best interest of the City to revise its policy regarding required compensation paid to the City upon vacation of public streets, alleys, and right of ways as described herein, now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Council of the City of Yakima does hereby declare and adopt as its policy regarding compensation paid to the City on the vacation of right of ways used for the purpose of roads or alleys, as follows: A. Compensation in the amount of one-half of the independently appraised value will be required to be paid to the City prior to effective vacation of any public street, alley, or any portion thereof within the City of Yakima for which the value of said portion of public street or alley exceeds Twenty Thousand Dollars ($20,000) as determined by considering one hundred ten percent (110%) of the Yakima County Assessor's valuation of said public street, alley or any portion thereof within the City of Yakima, unless one of the exceptions noted in Subparagraph 1B, 1C or 1D apply. B. For any public street, alley or any portion thereof within the City of Yakima valued at Twenty Thousand Dollars ($20,000) or Tess, as determined by considering one hundred ten percent (110%) of the Yakima County Assessor's valuation of said public street, alley or any portion thereof within the City of Yakima, that the party seeking vacation chooses not to provide an independent appraisal for, compensation in the amount of fifty five percent (55%) of the Yakima County Assessor's valuation of the public street, alley or any portion thereof within the City of Yakima at the time of petition for vacation shall be required to be paid to the City prior to effective vacation, unless one of the exceptions noted in Subparagraphs 1C or 1D apply. jc(res)/Street Vacation -Compensation 1 C. No compensation shall be required to be paid to the City on the vacation of a right of way which the City has not purchased, maintained, nor made any improvements to, and no planned or anticipated public purpose exists for maintaining the right of way. D. No compensation will be required to be paid to the City for the portion of a vacated street, alley or right of way, the ownership of which will revert to the State of Washington, Yakima County or the School District, as owner of the property abutting the vacated portion of the alley, street or right of way. Section 2. In the event compensation is due to be paid to the City and the value of the vacated right of way exceeds Twenty Thousand Dollars ($20,000), according to the records of the Yakima County Assessor and calculated by means currently used by the City, the Council requires that an independent qualified appraisal shall be obtained by the petitioner in order to determine the value of the subject right of way. The appraisal shall take into consideration the public improvements within the right of way to be vacated, according to their original or depreciated value as may be appropriate in the judgment of the appraiser. Section 3. Every ordinance hereinafter enacted by the City Council to vacate any street or alley, or any portion thereof, shall provide that such ordinance shall not become effective until the owners of the property abutting upon the street or alley, or portion thereof, so vacated shall compensate the City in the amount specified in Section 1 above. Section 4. Nothing herein is to be construed to diminish the right of the City to retain easements or the right to exercise and grant easements in respect to any vacated land for the construction, repair, and maintenance of public utilities and services. Section 5. The City Manager or his designee shall adopt administrative procedures and fees that a petitioner must comply with to process a request to vacate a public street or alley in compliance with this policy and existing law. Section 6. City of Yakima Resolution Number D-5630, adopted September 12, 1989 is hereby repealed. ADOPTED BY THE CITY COUNCIL this 4th day of S ATTEST: City Clerk jc(res)/Street Vacation -Compensation 2 tember, 2 07. avid Edler, Mayor BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. A I "f For Meeting Of September 4, 2007 ITEM TITLE: Consideration of a Resolution amending the previously adopted policy of the City of Yakima regarding the vacation of public streets or alleys; requiring an independent appraisal if right of way value exceeds Twenty Thousand Dollars ($20,000); authorizing valuation of vacated property by assessed valuation if one hundred ten percent (110%) of assessed value is Tess than Twenty Thousand Dollars ($20,000); eliminating one hundred percent appraised value recovery for certain property vacations; and repealing City of Yakima Resolution D-5630. SUBMITTED BY: Bill Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: Bill Cook (575-6113) Ray Paolella (575-6030) SUMMARY EXPLANATION: At your meeting on August 28, 2007, the question was raised on whether the proposed Resolution properly "tracks" State law. Additional research has determined that the Resolution did not track State law, because in 2002, the State added authority to allow cities to charge up to 100% of appraised value for streets and alleys in use for more than twenty-five years. However, it is Council's decision on whether a distinction in price (i.e. higher price) will be charged for streets and alleys in use for more than twenty-five years, or streets and alleys acquired with public funds. Because these exceptions are discretionary, staff is recommending Council remove these distinctions and use the same methodology for determining price as provided in Sections 1, A and B, of the attached Resolution. We make this recommendation for the following reasons: (Continued on page 2) STAFF RECOMMENDATION: Repeal Resolution D-5630 and approve the proposed replacement. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Page 2 1. All ROW vacations must first be considered by the Hearing Examiner and then forwarded to City Council for a final determination. Council can reject a request to "vacate" a street or alley if the value of the improvements is substantial, or if a need for the public ROW is anticipated. It is totally Council's decision to accept or reject a request. 2. Under State law there are few and limited economic tools available to attract new development to our community. In this case, the State legislature has provided one exception to this pattern, and for this reason we ask Council to pass this incentive on to the private sector. With Council approval, this Resolution would repeal and replace Resolution D-5630. Resolution D-5630 requires compensation in the amount of fifty percent (50%) of the appraised value to be paid to the City on the vacation of any public street, alley or any portion thereof, subject to exceptions. Resolution D-5630 makes no reference to the amount of compensation required when the valuation is based upon an assessment, rather than an appraisal. If approved by Council, this Resolution would set the compensation rate for a right of way vacation based on an assessed valuation at fifty-five percent (55%). Resolution D-5630 requires an independent appraisal to establish the value of compensation due to be paid to the City for the vacation of a public street or alley when the Yakima County Assessor's records show a value of more than $4,000. If approved by Council, this Resolution would increase the threshold dollar figure for requiring an independent appraisal from $4,000 to $20,000. The reasons for the proposed amendments are as follows: 1) The figure of $4,000 was a local discretionary decision, not established by state law. 2) The figure of $4,000 was set by Council in September 1989, which in today's dollars would equal approximately $7,000. 3) The cost of an independent appraisal can range from $500 and $1,500 for a "small" uncomplicated appraisal. Using an average appraisal fee of $1,000, it is staff's recommendation that an appraisal which costs more than five percent (5%) of the sale price (i.e. $20,000 x 5% = $1,000) suggests the opportunity to use a less expensive methodology of establishing assessed value. 4) Yakima County Assessor Dave Cook has stated that current assessed values average approximately ninety percent (90%) of appraised value, due to the time delay between reassessments. Therefore we recommend a compensation of 55% of the assessed value in these situations. In all other ways this Resolution will track State law with the exception that the discretionary requirement for streets and alleys 1.) in use for more than twenty-five years and 2.) purchased with public funds, is deleted.