HomeMy WebLinkAboutItem A: Amazon Headwaters Acq.EUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Work Session: Acquisition Update on East Fork Amazon Headwaters - Dillard Road
Meeting Date: June 8, 2005 Agenda Item Number: A
Department: Public Works Staff Contact: Johnny Medlin
www. cl. eugene, or. us Contact Telephone Number: 682-4930
ISSUE STATEMENT
This is a work session to update the council on the status of negotiations for the purchase of the South
Hills property abutting Dillard Road.
BACKGROUND
City of Eugene Public Works staff has negotiated to acquire portions of a 90-plus-acre parcel on Dillard
Road since summer 2000. Early negotiations, targeted to meet the needs of the Ridgeline Trail and
Stream Corridor acquisition programs, resulted in a 54-acre acquisition in October 2001.
Since October 2001, staff has placed a high priority on acquiring an additional 8.5-1 O-acre portion
which contained important stream corridors estimated to cost $150,000. This area is shown in
Attachment C, outlined in red. In 2004, this acquisition strategy shifted to a possible purchase of the
entire 39 remaining acres based on the property owner indicating that a price of $300,000 might be
acceptable. This area is shown in the Attachment B. The area in yellow is subject property and areas in
green are existing parklands. Initially, acquisition of the total parcel was not considered a high priority
for the Ridgeline Trail Program because the City had already acquired a connecting corridor for the trail
in this geographic area and lacks such in others. However, it was decided that is was worth pursuing if
the acquisition of 20 acres for the stormwater corridor and Ridgeline Trail programs would leverage the
donation of the additional 19-plus acres.
The City's offer of $300,000 for 39 acres was accepted by the property owner in an e-mail on March 22,
2004, but later retracted on April 5, 2004. Staff's understanding was that this retraction was based on
the property owner needing to honor a previous purchase agreement with another party. The property
was subsequently sold in May 2004 for $325,000 without further involvement of the City.
Staff contacted the new owner in June 2004 to determine his willingness to continue negotiations with
the City regarding this property. The response was a reluctant willingness to sell for $600,000 if the sale
could close by October 1, 2004. Staff informed the property owner that it would likely be impossible to
meet this deadline but that a good faith effort would be made in the hope the closing date might be
extended. City staff initiated the necessary appraisal work and applied for and received a State Parks
matching grant for $300,000. The appraiser worked with a local engineering firm to analyze the
development potential of the property. This analysis was necessary to determine if the development
potential would support an appraisal closer to the $600,000 asking price instead of the recent purchase
price of $325,000.
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As anticipated, it was not possible to complete the engineering and appraisal work by the October 1
deadline set by the property owner. The property owner declined an extension stating he needed to
continue with his development plans. The appraisal came in at $430,000 and the City sent a written
offer to the property for that amount in late October. The property owner declined this offer.
Subsequent verbal discussions with agents of the property owner indicate they may be open to the
potential of the City acquiring the stream corridors in the future. However, they wish to table these
discussions until they can determine if or how selling the corridors may impact the development
potential for the overall property.
See Attachment A for a bulleted chronology of events regarding acquisition negotiations.
RELATED CITY POLICIES
The purchase of property in the area under consideration impacts three ongoing programs:
· Stream Corridor Acquisition Program: Acquisition of the stream corridors within this parcel is
consistent with the stream corridor acquisition program. The East Fork of the Amazon Creek
Headwaters was listed in the October 2001 Stream Corridor Acquisition Study presented to the
council. This site was listed as a Tier III site (#11).
· Ridgeline Trail Acquisition Program: While not necessary for ridgeline trail connectivity, this parcel
abuts property purchased for the Ridgeline Trail and would complement that acquisition.
· Draft Goal 5 Inventory: Acquisition of the stream corridors within this parcel is consistent with the
natural resources protection of the corridor as suggested within the draft Goal 5 natural resources
inventory (site E37-M1).
COUNCIL OPTIONS
This work session is an information update only; no action is recommended
CITY MANAGER'S RECOMMENDATION
None.
SUGGESTED MOTION
None.
ATTACHMENTS
A. Chronology of acquisition efforts
B. Map of subject property in relation to other local City Park Property
C. Map of stream corridors on subject property
FOR MORE INFORMATION
Staff Contact: Johnny Medlin
Telephone: 682-4930
Staff E-Mail: johnny.r.medlin~ci.eugene.or.us
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ATTACHMENT A
East Fork Amazon Headwaters (Dillard Parcel)
PROPERTY ACQUISITION CHRONOLOGY
Fall 1998 POS bond measure provides $3.72 million for expanding Ridgeline Trail, with a
target of approximately 25 acres in the Amazon Headwaters vicinity
Summer 2000 Parks staff initiate property negotiations with property owner for portion of 90+/-
acre parcel on Dillard Road. Early discussion was for 26 acres at the southern end
of the site. Property owner countered with proposal to sell 54 acres--all property
south of and including the BPA easement.
March 2001 Stormwater acquisition program initiated.
October 2001 Southern portion (54 acres) purchased with POS bond and some stormwater
funds. Property owner continues to market the northern portion (early price is
approximately $800,000).
December 2001 City staff receives verbal approval from owner to proceed with appraisal and sale
of stream corridor and presents property owner with offer for 8.5-acre portion of
the remaining 39-acre site for corridor protection.
2002-2003 Property owner receives further input from private consultants and determines not
to consummate sale of a portion of the property. Negotiations are halted.
August 2003 Property owner responds with counter to sell 1 O-acre stream corridor for
$150,000, subject to approval of the location of the 10 acres within the larger site.
Offer was signed September 25, 2003. City surveys site to determine 10 acres to
be described in the purchase agreement and submits map to property owner in
November 2003 for owner's approval. At this time the property was listed for
sale for $798,000 (approximately $20,000 per acre).
January 2004 Property owner requests an offer for entire site. City offers $300,000 in a sale and
donation combination package. City funds consist of $150,000 stormwater
acquisition and $150,000 in Ridgeline Trail bond funds.
March 22, 2004 Property owner accepts offer by e-mail. City staff draft purchase offer and deliver
on March 30.
April 5, 2004 Property owner withdraws acceptance due to a previous sale agreement he had
entered into and indicated he was obligated to consummate.
May 2004 Property owner completes sale to third party for $325,000. No opportunity
provided to City to counter or match this offer.
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June 2004 Staff contact new owner and after a few correspondences owner proposes to sell
entire site for $600,000, but states his preference to develop the site. State Parks
Grant becomes available.
July 27, 2004 City presents formal offer to property owner, subject to receiving third party
funding for the additional $300,000 and subject to the property appraising for the
proposed sale price. Property owner required a closing date of October 1, 2004.
The City explained we would not likely be able to have the necessary engineering,
appraisal, and appraisal review work all completed by that time.
August 2, 2004 City initiates the appraisal work. City applies to Oregon State Parks for $300,000
matching funds to acquire property.
September 8, 2004 State Parks notifies the City that its application for the $300,000 grant has been
approved subject to completion of appraisal, the State's appraisal review, and
entering into the State/City grant agreement.
September 24, 2004 Grant Agreement is executed by City Manager and returned to State Parks for
execution by their Director.
September 28, 2004 Engineering work that is required for the appraisal is completed and delivered to
the appraiser. Appraisal firm expects to complete appraisal by October 15.
Appraisal will then be reviewed by City and simultaneously sent to State Parks
for review.
October 1, 2004 As this was the scheduled closing date per terms of the pending purchase
agreement, City notified owner of the following: 1) approval of the State Park's
Grant (subject to appraisal) and the Grant Agreement in process; 2) engineering
design work now completed; 3) appraisal should be completed within two weeks
and arrangements have been made with State Parks to expedite the appraisal
review process. City again requested extension of the closing date.
October 4, 2004 Property owner replied there remained uncertainties of the funding and closing of
sale. He declined an extension and explained he was now going to continue with
his development plan. He was asking his development team to begin scheduling
such activities.
October 8, 2004 City contacted appraiser to check status of report. Appraiser expects to have it
completed by October 15. The Director of State Parks executes the State/City
grant agreement and grants notice to proceed, subject to appraisal review.
October 15, 2004 Property owner's attorney contacts City and requests copies of the Grant
application and the engineering work that was completed for the basis of the
appraisal. They schedule a predevelopment meeting for Oct. 25, with Planning
and Development Department staff.
October 20, 2004 City was orally notified by the appraiser that the appraisal of the entire parcel
would indicate a market value of approximately $430,275.
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October 21, 2004 Sent memo to Council regarding status of negotiations
October 26, 2004 City sent written offer to purchase the property at the appraised price of $430,275.
November 2004 City received a verbal statement from property owner's attorney declining City's
purchase offer.
December 10, 2004 City informed by OPRD staff that if the city was not going to be able purchase the
identified property prior to July 1, 2005, they would request early notification so
that the funds could be redistributed to other Park agencies requesting grants.
December 14, 2004 POS Division Manager attends a SE Neighborhood Association Officer's Meeting
at their request to give a project update. Explained the appraisal and that the
property owner declined the City's offer. Also, explained that we soon notify
OPRD of the same.
January 11, 2005 City notified Oregon Parks and Recreation Department that we no longer had a
willing seller and must decline the grant.
April 18, 2005 Council requests a work session.
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Exhibit 'C'
May 12, 2005
300 0 300 Feet
'~2 Ft Contours I
Proposed Stormwater Acquisition
Creeks Caution: this map is based
Taxlots on imprecise source data,
Green Parcel subject to change, and for'
Parks general reference only,
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