RESOLUTION TO APPROVE A CONTRACT TO PURCHASE THE YACHTSMAN PROPERTY AND SIX LOTS FOR DEVELOPMENT OF AFFORDABLE HOUSING WHICH IS LOCATED WITHIN THE PHASE ONE MARINA VILLAGE PROJECT SITE. (SEE VIKING ACQUISITION PROPERTIES DOCUMENT FOR THE SITE LOCATIONS)
THE YACHTSMAN PROPERTY IS LOCATED AT THE SOUTH EAST CORNER OF 13TH STREET AND AVENUE C. IT IS OF CRITICAL STRATEGIC IMPORTANCE TO THE FUTURE PHASE II REDEVELOPMENT OF THE MARINA. CURRENTLY THE CRA LEASES THE PROPERTY FROM VIKING AT AN ANNUAL COST OF $120,256.32. THE AGENCY WILL SAVE THIS LEASING COST AND THE CITY/CRA WILL BE ABLE TO DEVELOP THE PROPERTY FOR OUR FUTURE PHASE II DEVELOPMENT. THE SITE IS LOCATED WITHIN THE MARINA AND IS NECESSARY TO FACILITATE A QUALITY FUTURE REDEVELOPMENT. THE CURRENT LEASE IS ONLY FOR PARKING AND DOES NOT ALLOW REDEVELOPMENT OF THE SITE.
THE CRA HAD THE PROPERTY APPRAISED BY TWO STATE CERTIFIED APPRAISERS WHO VALUED IT AT 3.6 MILLION AND 3.44 MILLION. THE PURCHASE PRICE OF 3.817 MILLION DOLLARS REPRESENTS TEN PERCENT ABOVE THE AVERAGE OF THE TWO APPRAISALS RECEIVED BY THE CRA. ADDITIONALLY, VIKING HAS AGREED TO INCLUDE 6 VACANT LOTS WORTH OVER $200,00 DOLLARS COMBINED, FOR THE CRA TO DEVELOP AFFORDABLE HOUSING ON.
THE PROPOSED PURCHASE AGREEMENT IS CONTINGENT UPON THE CRA OBTAINING FINANCING FOR THE ACQUISITION. OUR EXISTING FINANCIAL LENDER FOR CURRENT CRA LOANS (BBT) HAVE AGREED TO LOAN US THE FUNDS. ALL CRA FINANCING IS REQUIRED TO BE APPROVED BY THE CITY COUNCIL AND WE ANTICIPATE THIS ITEM BEING ON THE AUGUST 5TH CITY COUNCIL MEETING.
THE ACQUISITION OF THIS KEY PROPERTY ADDS TREMENDOUS VALUE TO THE CITY’S SURROUNDING PROPERTY AS IT IS DIFFICULT TO DEVELOP THE PROPERTIES WITHOUT THIS PROPERTY. ADDITIONALLY, THE FUTURE PHASE II REDEVELOPMENT WILL PROVIDE SUBSTANTIAL TAX REVENUE, LEASE REVENUE, AND ECONOMIC DEVELOPMENT FOR THE CITY.