DISCLAIMER

 

PUBLIC WORK AND UTILITIES COMMITTEE


08-0338R


RESOLUTION AUTHORIZING AGREEMENT WITH JOHN E. BOVEE REVOCABLE TRUST TO PURCHASE CERTAIN PROPERTY AT 21ST AVENUE EAST AND WATER STREET FOR $589,000.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to enter in an agreement, a copy of which is on file in the office of the city clerk as Public Document No. __________, with the John E. Bovee Revocable Trust to purchase property described therein for development of a temporary I&I holding facility in the amount of $589,000, payable to Fund 5531, Agency 500, Object 5532.


PUBLIC WORKS & UTILITIES DEPT/ATTORNEY


STATEMENT OF PURPOSE:  This resolution authorizes the city to enter into an agreement with the John E. Bovee Revocable Trust to purchase property at 21st Avenue East and Water Street for an I&I storage facility for $589,000.


The facility to be constructed on this property would replace one previously planned for property at 32nd Avenue East. When it was learned that this property was essentially unused and might be available, a further analysis was performed which demonstrated that, even including the acquisition of the property, there were very substantial cost savings to be attained by building at this site because of less rock removal and proximity to other sanitary sewer facilities including the existing pumping station. In addition, the costs of maintenance and operation would further reduce the city’s costs and so acquisition of the site was further explored.


It was determined that the property was actually being listed for sale by the owner and was not being occupied by them. So negotiations were undertaken to acquire the property. The listing price was, in fact, $589,000, but exploration in the real estate community demonstrated that this price was well within “market” and so, because of the fact that the property was being offered on the open market and because of the substantial savings available to the city if it acquires the property, the acquisition is being recommended.