Agenda - Council - 02/26/2024 - Laserfiche WebLink

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Councilmember Riley noted the only thing that makes sense to him is to sell the whole thing. He said this would take care of all of the issues and it seems to be what the developer wants. He asked what the advantage would be to the City and why they would want to approve more homes. Economic Development Manager Sullivan explained that when they looked at purchasing this property from the City, the counter proposal was to put more homes on the site due to the price of the land. He noted that if they are not comfortable with the additional homes, then they would sell them the land and they would then have the issue of what happens behind them. Councilmember Musgrove shared she is supportive of the sale. She noted that if the developer buys this land then she is okay with them doing whatever they would like with it. She noted that the appraisal is from 2022 which seems old. She asked if the dollar amount is set or if they can have a new appraisal done to make sure this is up to the market with costs. Economic Development Manager Sullivan shared that this appraisal was paid for by the City. He noted Staff does have a bit of a concern on whether or not they will still use this appraisal and if they feel that this amount will be fine. He added that not a lot has changed as far as the condition of the property. He noted that whether the price is higher or not, the funds will still go back into the RALF program and will not go back to the City. He added that if they do want another appraisal done this will just incur more costs. Councilmember Musgrove asked if the RALF dollars that would get refunded are just dependent on land sales or if there is a certain amount that they will eventually owe in the end. Economic Development Manager Sullivan noted they will be dealing with a lot more of these properties when the Highway 10 project is completed as the City owns a number of these types of properties. He explained that the RALF agreements are written with a specific procedure on how the properties will be sold. He noted if they were taken for highway purposes, then the RALF loan was what was needed to be paid. He said these properties are no longer needed for Highway 10. He added that they dispose of the land based on whatever the appraised value is and that is what it is sold for then the funds are transferred back to the RALF program. Councilmember Musgrove asked about the pre- and post -sale in regard to taxes if these are RALF properties and if the City is paying taxes on them. Economic Development Manager Sullivan said it depends on the use. He noted that if they are receiving lease revenue on one of these properties, then the County puts a taxable status on the areas that are receiving lease revenue and when the lease revenue is received, they then pay these taxes. He noted that this property they are discussing is not being leased and is just vacant so it is tax exempt; however, when it is sold it will go back on the tax rolls. Mayor Kuzma asked if there are setbacks on the new houses. Economic Development Director Sullivan shared they did look at this from a Planning perspective and noted they are looking at a five-foot setback on the boundary line. He noted this vas a negotiated item with it being a park. City Council Work Session / February 13, 2024 Page 2 of 10