02/06/12 Work Session - Laserfiche WebLink

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HRA Work Session Meeting Date: 02/06/2012 By: Darren Lazan, Housing & Redevelopment Authority 2.3. Information Title: Consider Process for Acquisition of Parcel at the Southwest Corner of Armstrong and 146th. Background: The HRA has directed and authorized the development team to approach three property owners on the west side of Armstrong Boulevard to discuss acquisition of their properties as part of the Armstrong Interchange and Sunwood realignment projects. All three properties are affected in some degree by the current project to realign Sunwood Drive, or the Armstrong overpass currently under preliminary design. The three properties involved are highlighted on the attached exhibit. Together with the Oasis Market site acquired previously, the properties represent the majority of the Right -of -Way north of Hwy 10 necessary to construct the Armstrong Interchange and Sunwood Realignment. One parcel owned by M &W Holdings, LLC (Wiser Choice Liquors) is owned by Jeff Wise, a seated City Council and HRA Member. Preliminary appraisal valuations have been determined and the development team, along with the city attorney, are in the process of approaching the three owners with offers to purchase either the entire property, or the portions of the properties necessary to construct Armstrong Boulevard. The feasibility of which will be evaluated based on discussions. The evaluation method used to assess the two northerly parcels was based on their value as raw land, which was the highest value as determined by the appraiser. While those parcels do have existing structures, and one has an operating business, the value of the land as a development opportunity exceeds that of the structures or business. The southern parcel is owned by M &W Holdings, LLS whose sole member is Jeff Wise. Unlike the other two parcels, The highest value for this parcel, as determined by the appraiser, is in the structure and business located there today. This makes the negotiations on this parcel a broader discussion than the other two parcels. Notification: Observations: Acquisition of the Wiser Choice parcel be comprised of three parts - Building, Land, and Business (relocation, fixtures, etc.) The valuation of the building and land were determined by the appraisal and are likely to be items with little room to negotiate. State statute governs the amount a municipality can pay for acquisition relative to an appraisal, and the values considered are in the range acceptable not only to the seller, but similar to those contemplated for the sale of