SR-12-17-2013-3GCity Council Meeting: December 17, 2013
Agenda Item:
-C,,
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Approval of Final Sale of City -Owned Property at 1122 22od Street
Recommended Action
Staff recommends that the City Council:
1. Adopt a resolution to approve the final sale of City -owned real property at 1122 22nd
Street, pursuant to SMMC Section 2.24.110(g); and
2. Authorize the City Manager to negotiate and amend the Purchase and Sale
Agreement with Pezhman Firoozfam.
Executive Summary
On October 8, 2013, Council authorized staff to negotiate and execute a Purchase and
Sale Agreement (Agreement) for the sale of 1122 22nd Street (Property) at no less than
market value. Staff negotiated and executed an Agreement on November 4, 2013, with
Pezhman Firoozfam (Buyer) in the amount of $1.067 million. Staff recommends
approval of final sale of this Property and adoption of the attached resolution.
Background
The Property is a residential parcel of 5,920 square feet with an existing 1,107 square
foot single - family home. It was granted to the City in 1994 by the Estate of Anna
Blackburn, with possessory interest to her caretaker, who has since passed away. On
March 12, 2013, Council authorized staff to solicit bids for the sale of the Property after
making a determination that the Property was deemed to be surplus property and other
public agencies expressed no interest in the Property.
On June 13, 2013, staff issued a Request for Sealed Bids seeking bids to purchase the
Property. After thoroughly reviewing all bids, staff notified the two highest and best
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bidders that they were progressing to the next stage in the process. On October 8,
2013, Council authorized staff to negotiate and execute an Agreement in sequential
negotiations with the two highest and best bidders for the sale of the Property at no less
than market value and subject to terms specified in the staff report. Staff negotiated
and executed an Agreement on November 4, 2013 with the Buyer in the amount of
$1.067 million. In addition, Council approved staff's recommendation to set aside the
sale proceeds for affordable housing production and preservation.
Discussion
To comply with SMMC Section 2.24.110(g) regarding approval of final sale of real
property, the City Council must adopt a resolution approving final sale, which must be
passed by an affirmative vote of five members of the City Council. A copy of the
resolution is attached.
As part of the close of this transaction, Buyer requests an offset for the costs of title
insurance and closing costs estimated at approximately $8,000. Staff recommends this
offset. The total sale price of the Property, less offset, exceeds the market value
established by a recent City- commissioned appraisal.
Next Steps
With Council authorization, staff would proceed to incorporate the offset and complete
the sale of the Property.
I•:
Financial Impacts & Budget Actions
Staff estimates that the sale of the Property will generate approximately $1.067 million,
less offset, in revenues in FY 2013 -14; the actual amount will vary depending on final
negotiations and closing costs. Proceeds from the sale will be deposited into account
04264.401801. These funds will be used for affordable housing production and
preservation. Budget changes associated with this transaction will be included in the
Midyear report to City Council once the sale has been completed and the final purchase
amount has been determined.
Prepared by: Ava Lee, Senior Development Analyst
Approved:
Attachments:
Attachment A: Resolution
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Resolution No. 10788 (CCS)
Amended Agreement No. 9808
(CCS)