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07/02/2012 04E Letter of Engagement Agreement with Korn's Appraisal Service; Regional Soccer Complex Grant Application BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: July 2, 2012 • ITEM TITLE: Resolution authorizing a letter of engagement agreement with Korn's Appraisal Service for professional appraisal services, not to exceed $6,000, in support of an acquisition grant application for proposed Central Washington Regional Soccer Complex. SUBMITTED BY: Michael Morales, Interim City Manager Joan Davenport, Planning Manager & Acting CED Director CONTACT Joan Davenport, Planning Manager & Acting CED Director PERSON /TELEPHONE: SUMMARY EXPLANATION: The City of Yakima is in the application process for a grant from the Washington Wildlife and Recreation Program (WWRP) project of the Recreation and Conservation Office (RCO) as provided in RCW 79A.15 to support the acquisition of property in the vicinity of the Cascade Mill Area for future use as a soccer complex. The Council authorized this grant application on April 17, 2012. One requirement of the grant application is an independent, professional property appraisal, which Korn Appraisal Services is willing to provide, as evidenced in the Letter of Engagement. Resolution X Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Source: Phone: APPROVED FOR City Manager SUBMITTAL: N. STAFF RECOMMENDATION: Authorize the Resolution to engage Korn Appraisal Services for the required property appraisal BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download 0 Resolution authorizing CityManager to execute letter of engagement agreement with Korn Appraisal Services for professional Services ❑ Letter of engagement • RESOLUTION NO. R -2012- A RESOLUTION authorizing the City Manager to execute a letter of engagement agreement with Korn's Appraisal Service for professional appraisal services in support of an acquisition grant application for proposed Central Washington Regional Soccer Complex. WHEREAS, the City Council of the City of Yakima (City) has previously authorized submission of an application for a grant from the Washington State Recreation and Conservation Office, Washington Wildlife Recreation Program, for acquisition of parcels of property to facilitate future development of a regional soccer complex within the City; and WHEREAS, the requirements of such grant application require an appraisal supporting the designated value of such parcels to be acquired with the assistance of grant funds; and WHEREAS, Korn's Appraisal Service has been found and determined to be a qualified professional appraiser, and has submitted a proposed Letter of Engagement agreement to provide the necessary appraisal; and WHEREAS, the City Council finds and determines that approval of such letter of engagement agreement is in the best interests of residents of the City and will promote the general health, safety and welfare; therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the Letter of Engagement agreement with Korn's Appraisal Service for professional appraisal services regarding the properties described therein, which Letter of Engagement is attached hereto as Exhibit "A" and incorporated herein by this reference; now, therefore, ADOPTED BY THE CITY COUNCIL this 2 day of July, 2012. ATTEST: Micah Cawley, Mayor City Clerk • i 1� Kor s Ap praisal Service f - --- 4,,fic\ I• ,,, 602 SO. 5TH AVENUE �J YAKIMA, WA 98902 , 509- 248 -7010 June 19, 2012 FAX 509- 457 -7766 Joan Davenport, AICP Planning Division Manager Department of Community and Economic Development 129 N. Second Street Yakima, Washington 98901 Dear Ms. Davenport: This engagement letter is to confirm your intent to hire our firm to appraise the property that has been discussed by you and I recently and is identified as: Parcel: 191318-42001 (11.88 ac.)& 41001(37.66 ac.), Yakima Washington. Parcel 42001, which has an old building present, is in the name of: Leelynn Inc & Wiley Mt Inc, and parcel 41001, which is vacant, is in the name of Boise Cascade Corporation. We have completed appraisals on numerous commercial and industrial properties in the past, and therefore we would be interested in appraising these properties for you. As was discussed, this appraisal will be used to assist the City of Yakima in purchasing the properties. We will provide you with a Summary Appraisal Report, which will conform to USPAP guidelines, outlining the Sales Comparison Approach to value, which is most meaningful in vacant land properties. As was discussed, parcel 41001 has some environmental issues which would have to be addressed in order to use the property. The cost to cure these conditions would have to be deducted from the value to determine the market value. It is assumed the City of Yakima would be responsible for any costs required to obtain such estimates to be used in this appraisal in order to support Extraordinary Assumptions and Hypothetical Conditions. As you know, we cannot guarantee any particular value, but will consider all factors relative to value, and will include a summary narrative appraisal. Our fee to complete this assignment is $6,000, and the appraisal will be completed by July 12, 2012. If this is acceptable to you, please sign and retum this letter and we will proceed. We welcome the opportunity to work for you on this property. KORN'S APPRAISAL SERVICE , Steve Korn, SRA Tony O'Rourke, City Manager la °teed - ecunosetried - 7cmout — VAiazza,