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HomeMy WebLinkAbout04/07/2009 13 Property Purchase 3rd and Walnut; 191319-24459; Washington State Department of Ecology 0 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 13 For Meeting of 4/7/09 ITEM TITLE: Consideration of resolution authorizing option to purchase property at 3 Street and Walnut SUBMITTED BY: Dave Zabell, Assistant City Manager CONTACT PERSON/TELEPHONE: Dave Zabell, 575 -6040 SUMMARY EXPLANATION: The City Council has previously discussed acquisition of the subject parcel in executive session and provided direction to staff to negotiate with the seller. Negotiations over the past months have resulted in a tentative agreement for an option on the property. 0 As background, this is a privately owned parcel of land located at the SE corner of 3rd St. and Walnut Ave. for which the City has held a long- standing interest due to its close proximity to the Police Station and Legal Center. The property encompasses an area of approximately 28,000 square feet. Given the needs of the Police Department, and location of the property, acquisition of the property is advantageous to the City. Continued on page 2. Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source Police Department Land Budget Service Unit 333. APPROVED FOR SUBMITTAL�•.•1- City Manager STAFF RECOMMENDATION: The staff recommends that the City Council adopt the , Resolution and direct the City Manager to execute the option to purchase agreement. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: III • Page 2 A Phase I Environmental Assessment (EA) of the property recommended that a Phase II EA be conducted on the subject property. This level of review entails the evaluation of soil and water samples from the property for the presence of contaminants. Previously the property owner would not allow access for that purpose as part of the City's due diligence efforts. Prior to taking ownership should the City ultimately purchase the property, the City should be aware of pollution levels present on the site as there is considerable liability attached to the ownership of a polluted site and the clean up of environmental contamination. Should it be determined that . the property is polluted, it could be extremely costly. As an alternative to a Phase II assessment, the City can limit its potential liability through a Prospective Purchasers Agreement (PPA) between the City and Washington State Department of Ecology. This alternative was agreed to during recent negotiations and is a condition of the proposed option to purchase. As presented, the option leaves the City with the option to withdraw should it be determined unadvisable to acquire the property on behalf of the public, and also protects the seller by establishing a price and conditions under which a contemplated sale would ultimately be completed. The PPA condition within the option allows for testing of the property for contaminants without exposing the seller or prospective purchaser to unnecessary risk. The option proposes a price of $340,000 for the property conditioned on the City successfully entering into a PPA with the Department of Ecology. The seller has agreed to the price and the PPA condition. The seller has also agreed to grant the City the right to use the property for parking purposes during the Option period. 411 RESOLUTION NO. R -2009- A RESOLUTION authorizing and directing the City Manager to execute an option with the owners of the property at 3 Street and Walnut Street (Assessor's Parcel No. 191319 - 24459) to purchase the property and to formalize and execute a Prospective Purchasers Agreement ( "PPA ") with the Washington State Department of Ecology prior to the City exercising the purchase option. WHEREAS, the City of Yakima has evaluated the acquisition of the property located at 3 ift Street and Walnut Street (Assessors Parcel No. 191319 - 24459); and WHEREAS, an option to purchase the property provides the City with the opportunity to consider potential issues related to acquisition that have come to Tight from a prior Phase I environmental analysis; and WHEREAS, due diligence requires more advanced environmental analysis encompassing inspections, surveys and environmental assessments, including but not limited to excavation and drilling for purposes of groundwater sampling, testing and monitoring and for purposes relating to working with the Washington State Department of Ecology to formalize and complete a "Prospective Purchasers Agreement" ( "PPA ") conceming the subject property, which PPA shall be entered and executed prior to the City's exercise of the purchase option; and WHEREAS, the City has conferred with the representative of the owners of the property on several occasions and discussed the prospect of an option to purchase the property, the necessary environmental analysis and the PPA required by the Department of Ecology, now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is herby authorized and directed to execute an option to purchase the subject property at 3` Street and Walnut; prior to exercising the purchase option, to meet the City's due diligence responsibilities, the City Manager is further authorized and directed to execute a PPA with the Department of Ecology in compliance with Washington law in order to provide for the necessary environmental analysis of the subject property. Subject to the satisfactory completion of all conditions of said option, the City Manager is authorized to take all necessary action to acquire the subject property under the conditions set forth in the option. ADOPTED BY THE CITY COUNCIL this 7 day of April, 2009. David Edler, Mayor ATTEST: City Clerk