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CC 2013-07-09_08.n. Modification to Listing PricesMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF MODIFICATION TO LISTING PRICES FOR SALE OF OLD RANCH ROAD PROPERTIES DATE: MARCH 26, 2013 RECOMMENDATION: It is recommended the City Council approve modified listing prices of $247,500, $242, 100, and $233, 100 for the three Old Ranch Road lots. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The sale of the lots is intended to generate revenue for construction of the new police station. The original listing prices were $275,000, $269,000, and $259,000. The change results in a 10% reduction in the prices. BACKGROUND: When the Recreation Center project was proposed at the City property on West Branch Street and Old Ranch Road, it was determined that the east portion of the property was not needed and could be better used to sell for residential use to generate revenue for the project. The property narrows as it extends up Old Ranch Road, and providing property for future residential development can create a buffer between the existing residences and whatever project is constructed on the main portion of the City parcel. The excess portion of the City property was subdivided into four residential lots, each in the range of 10,000 square feet. Three of the four lots were then approved to be sold to generate revenue for the Police station project. The Council approved the current listing prices at the March 26, 2013 meeting and authorized the City Manager to approve counter offers contingent upon City Council approval. ANALYSIS OF ISSUES: Since the property was listed, the City has received one offer. However, it was substantially below the listing price and the party rejected the City's counter offer. Since there has been an upturn in the residential housing market, the low level of activity appears to indicate the properties have been priced on the high end. As a result, the City's realtor has recommended a 10% reduction. Item 8.n. - Page 1 CITY COUNCIL CONSIDERATION OF MODIFICATION TO LISTING PRICES FOR SALE OF OLD RANCH ROAD PROPERTIES JULY 9, 2013 PAGE 2of2 ALTERNATIVES: The following alternatives are presented for consideration: • Approve staff's recommendations; • Approve a different listing price; • Maintain the current listing price; • Provide staff other direction. ADVANTAGES: Approval of staff's recommendation will increase the likelihood of success in selling the lots to generate revenue for the police station. DISADVANTAGES: The change results in a lower selling price if an offer at the listing amount was received. ENVIRONMENTAL REVIEW: Environmental review was accomplished through the subdivision process. PUBLIC NOTIFICATION AND COMMENTS: The revised agenda was posted in front of City Hall and on the City's website on Friday, July 5th. Item 8.n. - Page 2