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Department of Utilities
Reference: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, APPROVING THAT CERTAIN PURCHASE AND SALE TRANSACTION BY AND BETWEEN THE WATER ACTIVITY ENTERPRISE OF THE CITY OF BRIGHTON (“ENTERPRISE”), AND THE JOE A. EVANOFF AND LORIE A. EVANOFF CHARITABLE REMAINDER TRUST DATED DECEMBER 6, 2013 (“SELLER”), FOR THE ACQUISITION OF CERTAIN ADAMS COUNTY REAL PROPERTY AND IMPROVEMENTS, COMPRISING APPROXIMATELY 11.0 ACRES MORE OR LESS, AND LOCATED AT 11880 PEORIA STREET (“PROPERTY”); APPROVING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF THE PURCHASE PRICE ($700,000.00); AND AUTHORIZING AND DIRECTING THE CITY MANAGER OR HIS DESIGNEES TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE REASONABLY NECESSARY TO CARRY OUT AND COMPLETE THE TRANSACTION.
To: Mayor Richard N. McLean and Members of City Council
Through: Philip Rodriguez, City Manager
Chontel Trujillo, Assistant City Manager of Operations
Prepared By: Curtis Bauers, Director of Utilities
Date Prepared: September 12, 2017
PURPOSE
To consider the approval of a resolution authorizing the execution of contract with Joe and Lorie Evanoff Living Trust for the purchase of real property at 11880 Peoria Street, Brighton, CO., and any and all appurtenant irrigation wells, domestic wells, permits and other similar water rights associated therewith. The property has been deemed appropriate to be included in Brighton’s property portfolio for future stormwater detention purposes. Funding for the purchase - $700,000 plus survey & title fees - will come from existing Storm Drainage Impact Fees that have been set aside for such acquisitions. Earnest money in the amount of $15,000, to be applied in reduction of the purchase price at closing, has already been delivered to the Title Company.
BACKGROUND
The Utilities Department consultant completed the City’s Storm Drainage Master Plan in the first quarter of 2017. The Plan identified the need for an outfall in the area of 120th Avenue and Peoria Street to drain a significant portion of the City. There were two alternatives that were reviewed. It was demonstrated that a large detention pond in the area would reduce the cost and local impacts tremendously. The property located at 11880 Peoria Street was identified as a possible location. When the City approached the seller’s agent the property was under contract for $695,000. The City had the property appraised by a licensed appraiser. The appraisal returned a market value of $700,000. The City placed an offer on the property for the appraised value, which was subsequently accepted by the seller. The Water Activity Enterprise is now in a due diligence phase prior to approval of the transaction and closing on the property.
FINANCIAL IMPACT
The total amount payable to the seller, the Joe and Lorie Evanoff Living Trust, for the purchase of the property at 11880 Peoria Street, is $700,000. In addition, an amount no greater than $10,000 will be made available to pay for any and all fees in association with the purchase. Funding to offset these expenses will be derived from Storm Drainage Impact Fees, in place to fund such purchases.
STAFF RECOMMENDATION
Staff recommends the approval of the proposed resolution in order to provide for future Storm Drainage needs.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve the attached Resolution as presented
• Deny the attached Resolution as presented
• Postpone consideration of the Resolution with suggested changes
ATTACHMENTS
• Resolution
• Signed PSA