ORDINANCE No. 182486

*Authorize acquisition of an 18,450 square foot lot adjacent to Lincoln Park for addition to the park (Ordinance)

The City of Portland ordains:

Section 1. The Council finds:

1.  Ordinance No. 18026 passed by Council on November 22, 2006, authorized the Commissioner in charge of the Bureau of Parks and Recreation (Parks) to enter into purchase and sale agreements for the purpose of acquiring strategic properties using Park System Development Charge (SDC) funds.

2.  The Sharon Garner Trust (Seller) wishes to sell and Parks wishes purchase certain improved property (the Property) abutting Lincoln Park, with a specific street address of 1951 SE 135^th Avenue, with the Property depicted on Exhibit A hereto. The terms and conditions of the proposed purchase are provided in the attached purchase and sale agreement dated November 24, 2008. (See Exhibit B). The property is approximately 18, 450 square feet and is improved with a house and several outbuildings.

3.  The property value was estimated to be about $263,000 by Norris Beggs and Simpson on behalf of Parks in September 2008. The negotiated purchase price is $280,000, or about 6% more than the estimated value. Several factors contributed to Park’s decision to agree to the higher purchase price, including Park’s long-term interest in acquiring the parcel and the Sellers’ apparent willingness to hold the property until the real estate market improves in the event that a sale to Parks is not completed.

4.  Among other things, the City’s commitment to purchase the property was conditioned on Parks completing its due diligence review of the property and City Council approval. Parks has completed a building inspection and Phase I environmental assessment, which revealed no reasons to terminate the transaction.

5.  Parks has deposited $3,000 into escrow pursuant to the purchase and sale agreement, leaving $277,000 to be paid at closing, along with the City’s share of the closing costs.

6.  The residential improvements on the property are not needed for public use and Parks intends to sell or demolish the improvements as part of the site stabilization work that will be required after the property is acquired by the City. Parks has estimated that the stabilization costs will not exceed $25,000, including demolition costs.

7.  The Director of Parks reports that the Property meets SDC acquisition guidelines and that there is adequate SDC revenue to complete the transaction and necessary site stabilization work.

8.  The Director of Parks estimates that the on-going O&M costs will be about $1,200 per year prior the property being incorporated into routine maintenance activities associated with the remainder of Lincoln Park.

NOW, THEREFORE, The Council directs:

a.  The Commissioner in Charge of Parks or, in his absence, the Mayor, is authorized to execute all documents necessary to close the transaction once conditions precedent to closing specified in the purchase and sale agreement, as amended, have been satisfied and all documents have been approved as to form by the City Attorney;

b.  The Commissioner in Charge of Parks shall direct Parks to deposit $277,000 of Park SDC acquisition Revenue plus closing costs into an escrow account established for the purpose of acquisition of the Property;

c.  The residential improvements on the property are deemed unnecessary for public use and, at the discretion of the Director of Parks, may be declared surplus and demolished or disposed of in accordance with applicable City policies and procedures. Any net revenues attributable to disposal of the improvements will be deposited in the Park SDC account to offset acquisition and site restoration costs.

d.  The Director of Parks is directed to (i) add the Property to the City’s Park inventory; (ii) fund one time site stabilization costs of up to $25,000 from Park SDC acquisition revenue; and (iii) proceed with said stabilization actions once the Sellers have vacated the premises in accordance with the purchase and sale agreement, as amended;

e.  In accepting responsibility for the Property for future park development, the Council acknowledges the need to fund the on-going O&M cost estimated at $1,200 per year, and directs the Bureau of Management and Finance to transfer this ongoing funding allocation from the General Fund to the Parks and Recreation budget beginning in FY 2009-10 to be initiated by Parks request in the FY09-10 Fall BuMP.

Section 2. The Council declares that an emergency exists because delay may prevent the completion of the high priority land acquisition which is currently scheduled to close on or before January 30, 2009; therefore, this ordinance shall be in full force and effect after its passage by Council.

Passed by the Council: January 22, 2009    GARY BLACKMER

Commissioner Fish            Auditor of the City of Portland

Prepared by:  Stephen Planchon:kmg        By /s/ Susan Parsons

January 8, 2009              Deputy  

BACKING SHEET INFORMATION

AGENDA NO. 54-2009

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 182486