Item 3: Ordinance Vacating Portion of West 4th Alley

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OCHS Steve P From: ROYER Russ C Sent: Thursday, December 13, 2012 2:51 PM To: OCHS Steve P Cc: WILLIAMS Lloyd L; KEPPLER Peggy A Subject: FW: Alley Vacation - Basis of Value Report Attachments: RR Lot Buyers Stmt386.pdf, RR Prelim pkg..pdf Hi Steve, sorry I have not had a chance to respond to you sooner. Lloyd and I further reviewed the comparable sales data and related information submitted by the owner's rep. We recognize the one sale submitted was a parcel the subject owner purchased and is across the street from the subject area. This other sale was fairly dated being over 3 years old but we concur the values typically have not increased over that time period. Perhaps the main adjustments to that sale were the location in that the comparable property backs up directly to the railroad tracks which would result in needing to increase the value of the comparable sale property. A second significant adjustment factor of that sale compared to the benefitting properties of the vacation is the shape — it is fairly irregular which results in portions of the property not being developable or at least limited to a certain extent. This shape adjustment would also result in increasing the unit value of the comparable to make it more similar to the subject areas. And a third adjustment, which we did not put as much weight on was for the comparable being zoned industrial as compared to the subject property which allows for commercial uses as well. The market demonstrates commercially zoned properties typically sell for more than industrially zoned properties. Because of the shape deficiency and location next to the railroad tracks the highest and best use of the comparable sale may be as parking, in which case the zoning difference would not be as significant. City staff's initial concluded value of the vacation assessment was based on a fee value of $14 per square foot with comparable sales ranging from $6 to $20 per square foot. The county assessor's real market value of the subject properties are on average approximately $20 per sq ft. The assessed value of special benefit was further reduced by 35% for the public utility easement that will be reserved over the entire vacation area resulting in the estimated unit value for the rights being vacated of $9.10 per square foot. In further consideration of the additional sales data submitted city staff would agree to reducing the fee value of the area proposed for vacation to $12 per square foot and further reducing that value by the 35% for the public utility easement that will be reserved at the time of vacation resulting in a net value of $7.80 ($12 x .65) per square foot for the property rights being vacated. Thus yielding an adjusted vacation assessment of $36,450 ($7.80 x 4,676 sq ft) — reduced from the previous estimated assessment of $42,500. One other point I did want to respond to was the suggestion the alley configuration could be a negative. I thought it . might be beneficial to explain the basis of assessment for right of way vacation is based upon the special benefit to the benefitting (adjacent property) and thus the shape or configuration of the vacation area it not as significant as the adjacent property it is being assembled with. Eugene code 9.8710 (5) further defines how it is to be measured. I hope this helps address the questions or concerns. Please let me know if there are further questions. At this time Public Works is agreeable to reducing the proposed assessment from $42,500 to $36,450. From: OCHS Steve P Sent: Friday, December 07, 2012 4:18 PM To: ROYER Russ C Cc: WILLIAMS Lloyd L Subject: FW: Alley Vacation - Basis of Value Report Hi Russ,